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This Budget would rank among the most difficult Budgets that finance Minister Chidambaram has commended in his career. Over the past few months, industry has struggled on all accounts, from fiscal and current account deficits to falling growth, rising inflation and declining savings of the Indian common man.
The current Union Budget is firmly growth focused. The minister has incentivised manufacturing and investments through an "investment allowance" of 15% for capital expenditure above Rs 100 crore. By announcing 30% increase in planned expenditure, the minister has given further encouragement to the corporate houses to start investing.
Significant attention was paid to infrastructure sector especially by announcement of industrial corridors, roads, green energy and ports. Roads in particular could benefit significantly with a new regulatory authority and 3,000 km of roads in half year alone.
Financial services sector was addressed in a measured way with greater consideration paid to insurance sector. At the same time, the Finance Minister has taken care of the common man through a slew of measures in housing, healthcare, education, skill development, women empowerment, drinking water and sanitation.
While one could always argue that more could be done, especially for thermal power and coal mining, the Finance Minister has come out with a forward looking and growth focused budget with appropriate focus on key sectors, such as agriculture, education, rural progress, infrastructure and health care.
Y M Deosthalee
CMD, L&T Finance Holdings
