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Budget to spur consumption, drive growth: Britannia chief

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The Union Budget for 2018-19 provides a springboard to spur consumption and lead to faster growth across sectors, said FMCG major Britannia Industries MD Varun Berry on Friday.

Budget to spur consumption, drive growth: Britannia chief
The Union Budget for 2018-19 provides a springboard to spur consumption and lead to faster growth across sectors, said FMCG major Britannia Industries MD Varun Berry

“As the Budget is focused on infrastructure, rural development and huge employment generation, it becomes a springboard to spur consumption and lead to faster growth across sectors,” he said in a statement here.

With the expenditure projected to grow at 10 per cent during the year, Berry said development spending was expected to grow faster at 13-14 per cent, especially on affordable housing at 30 per cent and railways at 22 per cent, and these sectoral spends could generate huge employment, “resulting in a healthy and sustained consumer economy”.

Noting that corporate tax reduction to 25 per cent from 30 per cent for MSMEs with up to Rs 250 crore annual turnover, would have a positive impact on the industry growth trajectory, Berry said large companies, however, would have to wait longer though they account for about 90 per cent of tax collection.

“The Government’s resolve to improve tax compliance is bearing fruit, as evident from the personal tax collection contributing 3.3 per cent to the GDP, which is more than the corporate income tax at 2.8 per cent of the Gross Domestic Product,” he said.

Berry however said that the proposed increase in Minimum Support Price (MSP) by 1.5 times will improve farmers earnings but may lead to unidentified inflation if it is not carefully managed.