New Delhi: Presenting the general budget on Saturday, Finance Minister Arun Jaitley tabled Narendra Modi government’s first full term budget focusing on growth and development of the country.
In an hour and half long speech, Jaitley said that the country’s economy was better placed today with its credibility re-established by a series of measures taken by his government. “We had inherited a scenario of doom and gloom and have come a long way by proper actions. In the nine months the credibility of Indian economy has been re-established. The world is predicting it is India’s time to fly,” Jaitley said.
Though the finance minister kept to the strict regimen of fiscal consolidation, there was focus on agriculture, senior citizens, entrepreneurs and infrastructure development.
“I intend to establish a National Investment and Infrastructure Fund (NIIF), and find monies to ensure an annual flow of Rs200 billion (Dh1.2 billion) to it. This will enable the trust to raise debt and, in turn, invest as equity in infrastructure finance companies,” Jaitley told the parliament. The infrastructure finance companies can leverage extra equity from the funds and use it to erect infrastructure, he added. He further proposed permitting tax-free infrastructure bonds for projects in the rail, road and irrigation sectors.
Though there were no “big bang” reforms, the focus was on enabling social security for millions of Indians and putting back the infrastructure development of the country on fast track.
Progressive
The corporate sector and India’s growing super rich is happy with the reduction of corporate tax and abolition of wealth tax Indian industry leaders though hailed the budget as “futuristic”, laying the grounds for the development of the country. “There are lots of positives in the budget where it has laid the track for growth and development,” Sunil Munjal vice-president Hero Motors, India’s largest two-wheeler company told Gulf News.
Business chambers hailed the budget as one of most progressive one after 1991, when Manmohan Singh opened the country’s economy. Opposition though termed the budget as pro-rich and anti-poor stating that the Delhi election loss had it effects on corporate minded government. “The first half of the budget speech was dedicated to the lesser have’s which shows that the government has understood that just focusing on the rich would not help it stay in power,” said Congress leader Sachin Pilot.
