The Union Budget 2017 is a game changer and continues to rightly focus on rural, agriculture and infrastructure sector with an aim to give boost to formal economy. The planned investment in these sectors will not only create much needed jobs in the country but also spur consumer spending and boost economic growth. Fiscal deficit too has been contained very well.
The continued focus on ease of doing business with several measures such as abolishing FIPB, ‘Model law on contract farming’, Simplification of Labour laws under four areas – wages, industrial relation, social security and welfare and Safety – augurs very well for the economy. Major income tax relief in the lowest bracket is laudable as it will bring back consumer confidence and boost domestic consumption.
The measures announced to boost the manufacturing sector are commendable. Rewarding MSMEs by reducing rate of income tax will further boost `Make in India’; Proposal to set up dairy processing fund will boost food processing while increased allocation to schemes such as MSIPS will boost the electronics sector. Rural sector gets a boost with increased allocation to MNREGA.
The agenda for the year to `transform, energise and clean India’ is indeed noteworthy. Government’s commitment to lift 1 crore people out of poverty by 2019 is commendable.
Government’s steps to promote digital economy post demonetization are very logical and will boost formal economy.
Overall, this is a very good budget. Adherence to fiscal discipline, with emphasis on growth, development, increasing infrastructural & rural spending, and encouraging formal economy are key aspects of the budget.
Besides, there is focus on timely implementation and execution effective April 1 2017 as the Budget has been brought forward by one month, and combining Railway budget with Union Budget is a historic move.