It's a below-average Budget: Arun Singh

Despite expectations of a reform-oriented Budget to boost the growth of the domestic economy, the government failed to provide not only a reform agenda on subsidies or the foreign direct investment front but also effective timelines on the much-anticipated Goods and Services Tax and Direct Taxes Code.

However, the focus on mobilisation of funds for the infrastructure as well as thrust on the coal and power segments is positive as it indicates the government’s intention to mitigate the imminent issues, that are impeding industrial activity.

While the measures taken on the direct as well as the indirect tax fronts would enable revenue mobilisation for the government, which was much required, the non-divulgence on the social sector programme also enlivens, as during this year the government would require to channelise its funds towards other productive areas.

Further, the much realistic high fiscal deficit target set by the government, given the lesser avenues for expenditure rationalisation and expected lower revenue mobilisation, would ensure that the economic agents would set their expectations on the right path.

Thus, given the minimalist nature of the Budget, it could be rated as below average.

 

Arun Singh Senior Economist, Dun & Bradstreet India