BUDGET 2016-16 Mr. G. Murlidhar, Managing
Director at Kotak Mahindra Old Mutual Life Insurance Ltd.
“Based on a preliminary reading of the Budget speech and
information available, this appears to be a well-balanced and progressive
budget, with the most striking feature being the fact that fiscal prudence has
been maintained without compromising on developmental expenditure. Fiscal
deficit being contained at 3.9% for current year and further brought down to
3.5% in the budget, gives a lot of confidence to the market.
The emphasis on rural and social sectors is evident with
significant investments in irrigation, health care, rural road infrastructure,
crop insurance, MNREGA, and an all-time high target for agricultural rural
credit. Moreover the emphasis is on enablement rather than dole-outs.
Infrastructure development and power generation will
make the country more efficient and attractive for investments. Significant
investments in education and skill development are directed towards harvesting
the demographic dividend. Attention has been paid to encouraging start-ups and
increasing the ease of doing business.
Financial sector reforms have been given an impetus with
bank capitalisation as well as creating enablers for banks to recover stressed
assets. Dividend tax was unexpected but in fairness is only applicable at
higher income levels. With regard to insurance industry we will have to study
the specifics, however there are some small though positive steps like
reduction of service tax on single premium annuity policies, and increase in
limit for employer’s contribution to superannuation funds.
Overall it is a positive budget with long-term
objectives in mind. The industry will look forward to execution of the
initiatives outlined.”
For more details
Koeli Dutta,
Genesisbm
Senior Associate
1401 A, India Bulls Finance Centre, Tower II, Senapati
Bapat Marg,
Elphinstone Road (WEST) Mumbai -400 013, Maharashtra,
India
o +022 4417 4508
| m +91 9819393441 |
koeli.dutta@bm.com
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