Though there’s an increase in rural expenditure that will help FMCGs and boost the economy to an extent, what’s missing is a boost to manufacturing. The tax rate cut for MSMEs is welcome, but the percentage of Budget allocation for rural development is still nothing compared to the overall amount.
The best thing about the Budget?
A pro-growth agenda through investment in infrastructure and affordable housing is welcome. Reforms towards electoral funding by limiting of cash donations to Rs 2,000 are also a plus.
There’s been no talk of how to specifically build up digital infrastructure despite a perceived shift to Digital India.
Will the Budget fetch political gains for the Narendra Modi government?
There is a ‘feel good’ factor with the lowering of IT rates for the under Rs 5-lakh bracket and the outlay for rural development expenses. But a lack of reforms that offer individual relief for farmers struggling with loans will affect the Modi government’s perception in certain parts of the electorate.
 "Kanu Behl")
