The Union Budget was mostly positive, even though it didn’t have any ground-breaking announcements that most people were expecting post-demonetisation.
As far as the announcements are concerned, the most celebrated move was reducing personal income tax to 5 per cent for those earning between ₹2.5 lakh and ₹5 lakh. Also, the introduction of additional surcharge on the super-rich seemed rational. Lowering the tax rate of MSMEs with turnover lesser than ₹50 crore to 25 per cent is also a reason to cheer.
The much-needed focus on infrastructure, mainly transportation and multi-modal logistics, will be a boon if GST Bill is implemented without further delay.
There was encouraging news for start-ups where their three-year tax holiday can now be availed in the first seven years. Although whether a mere two-year extension will pave way for growth and profit leaving aside tax concerns, remains to be seen.
ESOPs and IPO shares might take a hit because of long-term capital gains controversy. Corporate tax, which is still high for a developing nation, remains unchanged leaving industry biggies dejected. This makes investors sceptical when it comes to considering India as an investment option, seeing as how there are other alternatives — such as Singapore and Sri Lanka — which have equal corporate tax but better capabilities.
However, phasing out FIPB marks a beginning for abolishing unnecessary bureaucracy, thus increasing the ease of doing business.
Rural India : A 100 per cent village electrification by May 2018 seems like a demanding task, not to mention that it sounds too good to be true. Constructive steps have been taken towards empowerment of rural women through allocation of ₹500 crore for Mahila Shakthi Kendra. Public is looking forward for lower lending rates especially for housing loans.
Further, measures have also been taken to promote Digital India and BHIM App to push cashless economy. Also, an attempt to increase transparency in electoral funding is commendable.