Budget to Accelerate Growth, says Mr. Kalantri
The Union Budget 2015-16 presented by the Union Finance Minister, Mr. Arun Jaitley has provided the much-needed thrust to infrastructure to accelerate economic growth through the proposed National Investment Infrastructure Fund and a tax free infrastructure bond. The Budget also proposes to introduce a regulatory reform law for infrastructure and has laid a strong foundation for economic consolidation. The Budget has sought to balance and rationalize the direct and indirect tax structure and streamline the regulatory process through a single window clearance with 14 regulatory permissions. Setting out an ambitious target of creating one lakh kilometers of road, the budget has signaled a major thrust to the road sector. Besides, fillip to Power, Port and Railway sectors have also been provided through financial reforms, which will bring in greater investments for growth and development, says Mr. Vijay Kalantri, President, All India Association of Industries and Vice Chairman, World Trade Centre Mumbai.
Mr. Kalantri further said that the implementation of GST by April 2016, which will put in place a state of the art taxation system will play a transformative role for the economy. The Budget is committed to rationalizing subsidies by plugging the leakages, scale-up disinvestments, thrust to micro industrial development by creating Mudra Bank, and other national funds and redressal agencies are positive initiatives to boost growth. The proposed bureau for national skill mission will generate employment and jobs to further invigorate growth.
We further feel that stalling of retrospective tax, deferring GAAR by two years and streamlining corporate and individual taxes thereby providing incentives to savings are steps in the right direction. With regard to direct taxes, the Budget seeks to reduce the corporate tax from 30 per cent to 25 per cent in the next four years and also abolish wealth tax which are welcome features. Visa on arrival scheme which has been expanded to 150 countries will greatly facilitate doing business and provide boost to tourism sector.
The Budget envisages strong partnership with the states in nation – building. Incentivising Manufacturing and Infrastructure with Rs 70,000 crore more for investment in infrastructure will be important steps to give substance to the “Make in India’ initiative.
The Budget has announced several sops and incentives to strengthen the socio-economic sectors to ensure balanced and sustainable growth.