A budget that inspires confidence
Pranab Mukherjee highlighted the need and desire to get to the 9 per cent growth track and the private sector’s role in this, writes Sanjiv Goenka. Talking headsindia Updated: Jul 07, 2009 03:09 IST
The finance minister has to be congratulated for presenting the first Rs 10-lakh-crore budget in the country’s history—a sure sign India is a power to be reckoned with globally.
He highlighted the need to reinvent the delivery mechanisms and to improve confidence. He has given a huge boost to the infrastructure sector and the IIFCL kitty being raised to Rs 1 lakh crore is a positive step.
Mr Mukherjee highlighted the need and desire to get to the 9 per cent growth track and the private sector’s role in this.
The nation welcomes the tax reforms announced, which include:
n Withdrawal of FBT and commodities transaction tax
n Increase of tax exemption on personal income tax
n Introduction of a new direct tax code in 45 days
n Rollout of GST
These are all measures that inspire confidence.
The budget is a vision statement that lays down the roadmap for the economy over the next four years.
The minister has brought the aam aadmi at the core of the budget. Flagship projects of the UPA have been provided enlarged expenditure and will change the very character of rural society.
Education and health are the invisible but crucial inputs of development and will, apart from improving quality of life, increase productivity, growth.
The minister would like the economy to go back to 9 per cent growth. It had been under the shadow of recession in developed countries and growth in the last quarter of 2008-09 had dropped to 5.8 per cent. The stimulus packages introduced earlier, amounting to 3.5 per cent of GDP, did push up growth.
Signs of recovery are visible; so is a triple vision to lead the economy to a 9 per cent GDP growth rate per annum at the earliest.
What is missing is a strong revival of private sector investment for which effective incentives should have been provided. The budget doesn’t make any changes in corporate taxation.
(The writer is vice-chairman of RPG Enterprises)