 "Major push for financial reforms: Rashesh Shah")
Financial reforms such as the much-awaited Bankruptcy Code, which will help create a formal insolvency resolution process for businesses, the Price Stabilisation Fund, which will help moderate inflation, and clarity on taxation of asset reconstruction companies are among the positives of this Budget.
Equally encouraging is that the government is making rapid progress in debottlenecking the economy, removing structural constraints, improving programme delivery through direct benefits transfer and being inclusive in spurring rural development. The finance minister stated the Fiscal Responsibility and Budget Management Act would need a revamp, in view of continuously changing global dynamics. The markets feel the Budget falls short on capitalisation of public sector banks. The way to look at it would be that the government has always maintained a need-based approach and this move will encourage banks to restructure and clean their balance sheets.
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There are various measures to promote Make in India, generate employment, foster entrepreneurship and galvanise local and foreign investments. The minister has provided the much-needed tax incentives for new manufacturing companies and reforms for start-ups. The Budget clearly embarks on the path of fiscal consolidation by keeping the fiscal deficit under check.
Rashesh Shah
Chairman & CEO, Edelweiss Group
Chairman & CEO, Edelweiss Group
