Pro-growth budget looks to satisfy all sections of society Signals intent
to contain expenses and keep deficit in check.
Budget Reaction 2014 from Mr. Malvinder Mohan Singh,
Executive Chairman, Fortis Healthcare Limited
The Finance Minister has done a good job in bringing out a budget that goes
the extra mile in spurring growth within the present constraints of the
economy. All sectors get support and there is a clear emphasis on providing an
impetus to Infrastructure such as Roads, Waterways, Sea Ports and Airports,
precursors to kick starting the economy.
FDI limits for Insurance and Defence have finally been raised to 49 %.The
proposal that allows REIT’s for Construction and Housing clearly augurs well.
The re-capitalisation of Public sector banks in which retail investors can now
participate is another move that will unlock capital and will bring in much
needed funds. There are also provisions that set out to widen and deepen the
debt markets through the availability of infrastructure bonds.
In his budget speech, the FM has spelt out specific measures to encourage
entrepreneurs, small and medium enterprises to take on a frontline role in a
developing economy, clearly signalling the move to unlock this latent potential.
Agriculture and Rural India too, get their rightful focus with multi
allocations specifically targeting development in these areas. These measures
are designed to contain rural migration to urban areas by balancing
opportunities and creating alternate focal points for employment in the
country.
Easing of Visa regulations and the development of specific tourism circuits
with allocations targeted at preserving our heritage sites will also provide a
boost to tourism and related services which are important cornerstones of the
economy.
Higher budgetary funds for building infrastructure for Medical education,
Engineering and Management are welcome steps. Specifically, the announcement to
set up All India Institutes of Medical Sciences(AIIMS) in Bengal, Andhra
Pradesh, Purvanchal and Jharkhand, with the eventual intent to cover all
States, will go some distance in bridging the supply demand gap for qualified
medical personnel.
On the revenue side, the taxation regime especially with regard to direct
taxes has been kept stable with efforts to expand the tax base. There is a
greater emphasis on indirect taxation and a directional move towards GST. The
arbitration and resolution mechanism to clear pending tax disputes is also
being strengthened through the setting up of the settlement commission.
On containing expenditure and maximising governance, an expenditure
management commission is being constituted to take stock of the situation. The
creation of a digital India and access to government ministries through an E
platform will ease transactional flow, making this process efficient and
transparent.
On the social front, schemes that target to improve the lot of the girl
child, senior citizens, the handicapped and projects for improved sanitation,
the availability of electricity and clean water are indeed welcome steps and
inclusionary.
On balance the FM has made his intent clear to reach out to all sections of
society, balance growth, lower inflation and contain fiscal deficit. I would
say it is a prudent budget.
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