Mangaluru : Compliments to the Finance Minister for a Budget filled with out of the Box Ideas and Path Breaking Initiatives. Full Marks Mr Jaitley!

The Right Budget at the Right time – India is blessed both with Facts and Fortunes – the Economic numbers like Inflation numbers, Oil prices, Forex Reserves, CAD are favourable and the Political Fortunes are convenient with a stable majority, an upbeat political mood – ceasing this opportunity, the Finance Minister has done the right thing at the right time.

The Budget has not looked to hit headlines as a populist, please-all budget. It is drafted to take up the agenda for which the people of this country gave the government the big mandate – Inclusive Growth, Transparency and Good Governance. It has gone about with clinical accuracy and professional precision in taking the agenda forward.

The out of box ideas and initiatives that impressed us are :

• Reduction of corporate tax to 25% and balance it with reduction of exemptions.

• Initiatives to track expenses, encourage cash less transactions and punish overseas unaccounted asset accumulations. These are workable ideas for talking black money issues.

• Abolishing wealth tax and introducing cess for the super rich is an idea to simplify tax laws. Direct Tax code is not being pursued. GST is to be implemented from 1-4-2016.

• National Agri Market, Micro Unit Refinance Bank, Electronic trade Receivables discounting scheme, Using Postal Network for JandhanYojana banking, Accident Insurance and Pension schemes for poor, utilizing unclaimed PF funds for health insurance, option to employees to opt out of ESI towards self insurance are unique ideas for social empowerment.

• Initiatives to set up IITs, AIIMS and Skill development institutions across the country, Innovation Mission, Infrastructure Fund, Self Employment and Talent Utilisation Fund, Student Scholarship direct transfers are laudable initiatives at getting the youth for the Make In India campaign.
• Gold Monetisation Scheme and Sovereign Gold Bonds to convert metal into investible funds are commendable ideas to unlock the potential of Indian gold reserves.

• The stress not on ending subsidies but in efficient delivery of subsidies through tracked bank channels is a practical approach that the government has adapted.

On the flip side:
• The service tax rate is going up to 14%.

• The middle class are to be satisfied with minor increase of deduction limits for health insurance etc – these increases arebeing neutralized by inflation.

• More initiatives were expected in infrastructure investments to build robust framework of rail, road, irrigation and telecom networks, in providing easy credit for industry and trade, in making business regulatory bodies business friendly through transparent IT platforms and re-organising tax departments as business friendly facilitators rather than regulators.

We need to wait and watch for success of this year’s initiatives before hoping for more such initiatives. Achhe din aanewalehai – there is hope in this Budget and beyond.