Ajit Gulabchand: Budget 2017-18: A well thought-out exercise

This Budget is a well thought-out exercise and showcases government's sustained efforts to ensure fiscal consolidation, spur growth and create more jobs. Most importantly, though the Budget is devoid of any Big Bang reforms or negative surprises, which the industry feared, it clearly demonstrates the continuance of the government's stated policies.

 

The substantive enhancement in the capital expenditure is a step in right direction. It exemplifies that the government is aware of slowing of the economy and serious about steps needed to spur the growth.

 

The Budget augurs well for the infrastructure industry, as the 24 per cent capital outlay will not only help the sector but will boost manufacturing and services industries, too. The thrust on roads, railways and other areas will accelerate investments and help create more jobs. The government has clearly understood the pain that industry has gone through for stalled projects, which not only clog the system but put the companies executing it and banks in trouble. Now, it is coming out with legislation, means the government has not only its ears to the ground but also acting on it to bring a superior dispute resolution mechanism.

 

It is also a welcome move to grant infrastructure status for affordable housing and reduction in the long-term capital gain tax, as these steps will propel more buying and selling. Another vital aspect of this Budget is that it aims at scaling down taxation and regulatory overreach, which will spur investments and benefit the ‘Make in India’ campaign.