Giving the thumbs-up to the Union interim budget presented in the Parliament on Friday by Union Finance Minister Piyush Goyal, vice-chairman of CII (Goa council) and director of Sancoale Shipping Lalit Saraswat said that more money in hand will mean increased domestic demand that will positively impact businesses.
Participating in a panel discussion on the interim budget held on Friday in Panaji by the Confederation of Indian Industry, Saraswat said the budget is an exciting time for India’s growth story.
Debais Patnaik, associate professor, department of economics, BITS Pilani, who also spoke at the panel discussion, said, “The budget is a welcome step for rural class, farmers and the vulnerable section.”
However, he questioned as from where the money would come given the fund constraints in the economy.
Expressing his disappointment over the budget not touching upon police reforms and the corporate sector, Patnaik rued over the neglected approach towards exports and industries.
Commenting on the achievement of crossing a GST collection of Rs 1 lakh crore in January, Joshua Ebenezer, director, Customs and International Trade Indirect Tax Advisory, pointed out that there is no controlled mechanism in the GST system.
“Tax credited back into the system is known, but there is no clarity as how much input credit is actually claimed by small and medium-sized enterprises,” he observed.
Ashutosh Karangate, managing director, Mangal Analytics and Research Consulting, hailed the income tax reforms on the individual front.
He said, “It has been put out thoughtfully keeping in mind the lower middle class. The announcements such as no tax on the notional rent for second self-occupied house and increasing the TDS limit on interest income from Rs 10,000 to Rs 40,000 per annum will help in generating income for the poorer section.”
Karangate added that for farmers affected by natural calamities, an interest subvention of 2 per cent, topped with 3 per cent given for the entire loan restructuring period will generate an additional income for them too.