1 Mar 2015

APPRECIABLE UNION BUDGET FY16- Apparently, a rose with less thorns.

Hopefully, I would like to say that a lot of scope for optimism exists in the UNION BUDGET FY16. Unlike the cliche' offers, the current budget seems to be less superficial and more pragmatic! 

Targeting a fiscal deficit of 3.9% and FM still claims that it can be brought to 3% in the coming years, sounds both interesting as well as Utopian at the same time! Service tax is to be increased to 14% and corporate tax reduced to 25% say, for the next 4 yrs or so are to be welcomed wholeheartedly. I would like to say that this should be considered as a step to reveal the responsibility of a tax payer, positively. This helps to make up the scores of GST. 
This Budget has brought out certain bold steps like avoiding wealth tax, by increasing  the surcharge by 2% on the other side, is an appreciable decision. Govt. also plans to take strict actions against violations of any sort. Technically, this helps to bring back  a lot of hidden wealth. Decision to Manufacture Indian gold coins are appreciable since it could convert a lot of stocked unproductive gold assets to productive funds. 
A well crafted SARFAESI could bring further positive impacts on NBFCS, eventually which could boost them up by avoiding a lot of red tapism indirectly. I think this could even impart confidence on RBI, thereby lubricating its fulcrum. This is really significant since SICA and BIFR were proved to be failures in the timely executions of bankruptcy. Also, I think eventually, we can hope that strategic disinvestment could happen in a better way now!I would like to say that MUDRA, is yet another positive step taken by the Govt. to promote entrepreneurship especially among SC/ST and other MSMEs indeed.
Visa on arrival has been extended to 150 countries, is yet another good step from the Govt. 
Obviously, the deferring of GAAR for the next couple of years attracts foreign investments for sure which takes up the idea of  'MAKE IN INDIA',  but we should also consider the fact that the percentage of SKILLED LABOR in India is too low as when compared to that of Japan and other nations. Here comes the questions regarding the Govt.'s plan to upgrade education systems and employments that sounds brittle in many aspects. Another positive aspect which I do find is that agro-based industries are given certain credit facilities. 
Also, certain plans are being mentioned for the enhancement of irrigation and farm areas. Women and aged people are given a mighty importance in this budget. I should say that it is a remarkable revolutionary idea coming true, if every Indian could get an insurance coverage for just Rs. 12...! Applause for that! 
Tax exemption for Swachh Bharat and other 'Modi' plans of course, are acceptable indeed, with positive intentions. However, thorough checks are to be made on further fund allocations and its utilization. Politically, the budget seems to satisfy AAP logics also. Special plans for Bihar and WB are appreciable, though it could be viewed through red eyes in cognizant with the legislative elections to be held next year.
Overall, I felt this as an apolitical budget, unlike the ones we had been watching through years!
However tax exemption has been granted for YOGA and similar things, On behalf of this, I would like to point out certain subtle individual beneficiaries who try to sell out spirituality out there in the market.On the contrary, as a wholesome, the Union Budget FY16 is an optimistic one, which allows an 'ease' to do business in India, based on a lot of positive issues. It imparts a lot of hope on the common man, and I should say that this would be the best budget, present India can ever have, if implemented properly. Now, let us put our hopes on the ones who implement these.

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