Union Budget 2020 Reactions
Limited fiscal room constraining any outright fiscal stimulus - While the Government is walking a tight rope with respect to fiscal deficit, especially due to corporate tax cuts (despite higher receipts from RBI), there was a case for a fiscal stimulus expected in the budget, as the RBI has called for in the recent policy statement. The government acknowledged its fiscal challenges, resorting to the escape clause in the FRBM (pushing up the deficit to 3.8% in FY 20 & 3.5% in FY21) with total expenditure increase by 13% (higher increase in capex) resulting in incremental improvements across sectors.
M M Murugappan
Executive Chairman, Murugappa Group
Overall, the government appears to have chosen to consolidate on the reforms of the past few years. The budget continued with the thrust on infrastructure, social welfare, improvement in ease of living, simplification on taxes and leveraging technology for better governance. Full tax exemption to Sovereign Wealth Funds for investments in Infrastructure and other notified sectors is a significant positive. It was also heartening to see the focus on sustainability through measures on the environment and climate change. Similarly, the continued focus on cooperative federalism is positive.
ED & CIO, SBI Mutual Fund
The public sector’s role is imperative in making Budget 2020 a reality. The government has given a strong impetus to both investment and consumption — the key drivers in boosting the economy. The Budget is inspirational with a focus on all sectors, giving PSEs a more imperative role in contributing to the overall economy.
Director-General, SCOPE (Standing Conference of Public Enterprises)
Budget 2020 is a balanced and pragmatic statement of intent. Finance minister has attempted to address the trust deficit across a host of sectors. She has assured stock market investors by abolishing dividend distribution tax, addressed concerns of start-ups with respect to ESOPS and in the renewable energy sector through strengthening of contracts act and lowering of Corporate tax rate for new energy companies. While there was pressure to move away from fiscal responsibility the government has chosen to walk a middle path allowing for an acceptable increase in fiscal deficit while putting some extra money in the hands of tax payers.
CMD, ReNew Power
While the budget overall had measures directed towards boosting the income of people and enhance their purchasing power through tax relief, it has some specific measures for the real estate sector too. The budget announced the initiative to develop five new smart cities in collaboration with States in PPP mode. This is a welcome move and will enhance the real estate prospects. It strengthened the commitment to affordable housing, which is the government’s focal point for real estate.
Chairman and Managing Director, House of Hiranandani
Considering the scale and sweep of the challenges faced by Govt, the FM has done a commendable balancing act in allowing fiscal deficit to reach 3.8 % in FY 20 (against a target of 3.3%) and a slightly higher target of 3.5% in FY 21 by keeping intact the trajectory of social and infrastructure spending in the economy. The widely expected removal of DDT completes the revamping of the corporate tax structure in India and truly makes India one of the most attractive investment destinations in the world. This step alone should considerably improve the ROI for foreign investors in Indian companies.
National Tax Leader, EY India
The Union Budget attempts to activate multiple levers like rural, infrastructure, entrepreneurship and financial sectors to stimulate growth. It remains to be seen which of these will fire and to what extent. We are optimistic about the government's rural agenda and hope that it buoys consumer demand for the FMCG sector.
MD, Britannia Industries
The Rs 1.5 lakh deduction in affordable home loan interest extended by another year will also bring people closer to their dream of becoming home owners. The tax soaps for affordable housing is also extended by one year to March 31, 2021 is a welcome move and our affordable housing brand, Provident Housing Limited looks forward to leveraging that.
Ashish R Puravankara
Managing Director, Puravankara Limited
Finance Minister has proposed to bring in a scheme for the resolution of outstanding income tax litigation by allowing taxpayers to pay only outstanding tax before March 31, 2020 to settle the same. In case demands were to be paid after March 31 2020 an additional amount may have to be paid. Exact details of the scheme are awaited. This is a very significant step to curb litigation in line with other steps introduced by the Government in recent past such as increasing threshold for filing of appeals by the department. A very welcome step indeed.
Partner, J Sagar Associates
Didn't hear an explicit recognition that we are in a crisis, that we are at the lowest growth
Dr Naushad Forbes
Confederation of Indian Industry to NDTV