Impact of Indian Budget 2015 - Brave, Futuristic, Reformist
Posted in Finance Articles, Total Reads: 1024
, Published on 08 March 2015
Arun Jaitley's Budget 2015 is brave in its stance, futuristic in its approach, and above all, reformist in its spirit. It contained a bold statement of the road ahead for transforming the "recovering national economy" to a "surging economy".
FM announced concrete measures to address generation of black money, putting in place an enabling regulatory mechanism to improve ease of doing business, encouraging innovation, public debt management, spreading JAM (Jan Dhan, Aadhaar and Mobile technology) for efficient delivery of subsidies, rationalisation of taxes, widening social security net, with a view to achieve rapid economic development.
Let’s see what’s in store for you in the budget:
Budget 2015-16 promises that black money holders would not get off lightly. FM has 3 point agenda
All three are needed, but are essentially draconian in nature. We have to end both the creation of more black money and help reduce its stock accumulated in the past.
The Indian government plans a large scale push on the infrastructure sector giving it lion’s share to spur infrastructure growth. Government's aim is to increase public spending on Infrastructure projects. The government is also setting up a National Investment and Infrastructure Fund. Jaitley also said that there is a proposal for conversion of existing excise duty on petrol and diesel to the extent of Rs 4 per litre into Road Cess to fund investment in roads and other infrastructure.
Ease of doing business in India
India is currently ranked 142 by the World Bank in ease of doing business. FM clearly has this in his mind as he mentioned it 5 times in his speech. The FM said that the government, has recently launched an e-biz portal which integrates 14 regulatory permissions at one place to facilitate businesses. Here are the proposals to help ease of doing business in India.
India is one of the largest consumers of gold in the world and imports as much as 800-1,000 tonnes of gold each year. To curb gold imports and monetise large idle stocks of the precious metal, Finance Minister Arun Jaitley on Saturday announced
This move would help in containing trade deficit and current account deficit.
If India has to achieve GDP growth of 8 per cent, then it needs a skilled, trained and educated workforce to make it possible. The Budget has addressed some of the needs in the education space and has set the pace for new reforms to be introduced. Some of the key policy initiatives introduced by the Budget are as follows:
The Budget did not get into the 'Digital India' initiative, whose aim is to develop digital infrastructure, e-governance and e-services. There were expectations on substantial budgetary allocations to further the digital education agenda.
Arun Jaitley has proposed to extend visa on arrival to 150 countries up from 43 countries. It is a great move, because tourism is one of the biggest contributors to a country's GDP. In his Budget speech, Jaitley pointed out that facilities at India’s 25 Cultural World Heritage Sites were deficient and called for development of the locations. “Facilities like landscaping restoration, signage and interpretation centres, parking, access for differently abled, amenities for visitors including securities and toilets, illumination and plans for benefiting communities around them would be restored,” Jaitley said.
What’s cheaper what’s expensive?
Hopefully, this budget marks the beginning of a vital journey of the people and the national economy unleashing its full potential to accomplish our status in the global economy. India's steady journey has begun.
Acchhe din aa gaye or Babaji ka thullu, it’s a good budget from the point of view of the government!
This article has been authored by Bhavin Chotai, Chartered Accountant
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