The government through this Budget laid importance on the need to build trust with its stakeholders.
The first level of trust building has been through more realistic projections on the government finances and assuming a nominal growth rate of GDP of 10 per cent. While the deficit estimates have been breached, the government has not abandoned the path to fiscal prudence and has limited the breach to 0.5 per cent that is as per FRBM provisions.
The government is committed towards addressing the apprehensions around doing business in India. Inclusion of a Charter for Tax Payers in statute and amendments to the Companies Act on clauses pertaining to criminal liability are two important announcements towards addressing the same.
Enhancement of turnover to Rs 5 crore from Rs 1 crore for micro and small medium enterprises to require an audit, will help in easing their compliance costs.
The stress in the banks and the non-banking financial companies (NBFCs) has led to undermining of confidence in the sector. The enhancement of the deposit insurance to Rs 5 lakh from Rs 1 lakh will help in restoring faith of small depositors in the banking sector.
In summary, these measures are likely to boost business confidence and address apprehensions of businesses, investors and common people. We hope that these would have a positive rub off on the economy, that is needed urgently given the global and domestic economic outlook.