A well balanced act: Hemant Kanoria

Hemant Kanoria, CMD, Srei Infrastructure Finance

This year’s budget has been a well balanced act, with adequate emphasis on the infrastructure sector, containment of the fiscal deficit, implementation of the roadmap on Goods & Services Tax (GST) and Direct Tax Code (DTC), rationalisation of income tax slabs and an impetus to the use of renewable energy.

The increased allocations for infrastructure and an emphasis on developing social infrastructure are positive developments. The focus on expanding the social security net and bridging the skill-gap augur well for the economy.

As far as the infrastructure financing sector is concerned, the increase in MAT from 15% to 18% would act as a deterrent. We were expecting a re-instatement of the benefits under Section 10-23(G) of the Income Tax Act.

 

The status quo on service tax is welcome and is a right step towards the goal of a unified GST regime.

I am particularly excited at the prospect of RBI providing banking licenses to select NBFCs and private entities in order to expand financial inclusion. We had been demanding this for some time because as this is an idea whose time has come. However, we await the details. On a scale of 10, I would happily give this budget a score of 8.