Budget - Growth oriented and aimed towards uplifting the rural economy

Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises: " Budget 2017-18 successfully outlines the growth priorities for the economy, which is still in the process of recovering from the impact of demonetization. Equally important, the Finance Minister has managed to maintain the fiscal balance by keeping deficit at 3.2% of GDP.

Sharp increase in investment in infrastructure to Rs 3.96 lakh investment is a much needed step to revive the economy and boost job creation. Major thrust in investment in agriculture and rural development is loud and clear. Expansion of agricultural credit target to Rs 10 lakh cr will not just help boost production but significantly enhance farmers’ income in the coming days. The Budget proposal to introduce a model law on contract farming is a much needed move to facilitate the entry of corporates into the sector to increase productivity. The announcement of the launch of SANKALP (Skill Acquisition and Knowledge Awareness for Livelihood Promotion Programme) at a cost of Rs. 4,000 crore to provide market relevant training to 3.5 crore youth is a welcome step.

The overall corporate tax rate has remained unchanged causing some concerns for large corporates. The Finance Minister has however managed to extend some relief to the MSME sector by reducing income tax rate to 25% for companies with annual turnover up to Rs 50 cr. Reduction in individual income tax rate in the slab of Rs 2.5 – 5.0 lakh to 5% from 10% has addressed a long standing demand from the middle class. This can aid consumption in the economy.

The Budget aims to incentivize and promote ‘Digital Economy’, which is clean and efficient. By putting a cap of Rs 3 lakh on cash transactions, the Budget highlights the need to move towards digital transactions. Similarly, by limiting cash donations from individuals to political parties at Rs 2000, the Finance Minister has signalled a clear intent to deal with one of the most controversial aspects of political funding. The idea of issuing electoral bonds is a welcome initiative.

The Finance Minister has once again reiterated his commitment to ‘Ease of Doing Business’, by ushering in several key changes. He has hinted at further liberalization of the FDI regime and abolition of the FIPB in 2017-18. This gives out a clear signal to welcome foreign investors.

Overall, this year’s Budget is going to be remembered as much for its focus on growth as its ability to drive inclusion in the economy."