The Budget has been restricted to a statement of intent. This however be thought of as an exception to the rule if it is the first budget of a government looking to stay in power.
Our basic expectations from the budget remain focused on containing fiscal deficit at 5.1% of the gdp without any negative surprise on taxation. Expectations from industries tends to vary a lot. However let us put together the elements of a successful budget.
- Maintaining fiscal discipline
If the fiscal deficit is not maintained the economy will suffer and with that chances of a rating upgrade is less likely.
- Giving encouragement to Research and Development
R&D can be encouraged through relevant tax sops thus fostering innovation and creating a culture becomes important from the view of becoming a world leader.The key is to identify sectors which are likely to exceed world standards and create a cluster based approach on the same.
- Reducing personal taxes
This would put money in the hands of the consumer and spur the consumption economy. This is likely to prod the economy and in turn the markets.
- Providing financial support to startups
Startups need to evaluated in terms of contribution to the ecosystem over the longer term.
- Continuation of financial support to infra and allied industries
This would enable creation of the multiplier effect in continuity.
May the force be with us!
