The Budget can be referred to as the “vision document” as it focused on rural, agrarian and social sectors, which will create a huge demand for goods and services for India Inc. He has drafted the roadmap to achieve the target of 9 per cent GDP. The enhanced emphasis on infrastructure projects shows the determination of the government to boost domestic demand. This will further incentivise other industries in the medium-term.
The government is clearly expecting increased public private partnership (PPP). The availability of Rs 100,000 crore of refinances from IIFCL and banks will ensure greater degree of sustainability to infrastructure projects in the coming years.
At a time when the government is under severe pressure to reduce the fiscal deficit, the abolition of FBT, surcharge on personal income tax and commodities transaction tax are especially welcome features. These measures would leave a lot of money in the hands of the spender, which is a good sign for the economy.
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