New Delhi, July 10, 2014: Kaushal Sampat, President & CEO – India, Dun & Bradstreet
Amidst much euphoria, the new Government has delivered a balanced Budget- with something significant for almost every key sector of the economy. Even as some of the much expected “big-bang announcements” were missing, the Budget document enunciates a host of new ideas that will have a far-reaching impact on reviving economic growth going forward. The three segments which stands highlighted are thrust to infrastructure, augmentation of savings and boosting entrepreneurship. The focus on infrastructure and manufacturing has the potential to kick-start the investment cycle while the legislative and administrative changes to reduce litigation in direct taxes and focus on digitalisation at village level reflect the attitudinal change that this Budget has embarked upon. However, the optimistic revenue target of 15.6% and lack of clarity on retrospective amendments to taxation laws strike a somewhat discordant note. Further, the fiscal deficit target seems tad ambitious and will bank upon the revival of the economy, in absence of which will require pruning of expenditure. Overall, the Government through this budget has given a direction of how it intends to take the India’s growth story ahead.
Dr. Arun Singh, Senior Economist, Dun & Bradstreet India
The Union Budget should be viewed from the perspective that it was set on the backdrop of slowing economy, a legacy of profligacy and within two months of formation of the new government. The government has presented a ‘realistic budget’ with a set of new ideas and striking a balance between the industry and the social sector. While there has been a focus on all the segments of the economy, thrust to infrastructure, boosting entrepreneurship & private public partnership and measures to push up savings would be the three key takeaways from the budget. However, the fiscal deficit target for FY15 seems difficult and the path set for fiscal consolidation for the next few years needs to be carefully looked at. While setting expenditure management commission, overhauling the subsidy regime, legislative and administrative changes to reduce litigation in direct taxes are welcome measures, there has been a lack of clarity on GST and direction on other reforms which we hope would be addressed going ahead. Nonetheless, the current government has set the path for the growth of the Indian economy – the central focus of which is infrastructure, including the rural sector. CCI Newswire
