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Just like a nine-pointer from an IIT who excels at a number of subjects, this Budget also excelled in myriad issues. Besides higher allocation for infrastructure and higher state share in resources, fiscal consolidation target of three per cent deficit by FY18 has been reiterated. Revenue assumptions are conservative and realistic.
To revive the capex cycle in FY16, the Budget provisioned for a national infra fund, reduced risk to private capital in PPP projects, increased availability of 'plug and play' projects, targeted an efficient dispute resolution mechanism and called for corporatisation of ports.
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An e-portal for 14 clearances, GST implementation from next year, deferment of GAAR, moderation in corporate tax rate and withdrawal of exemptions will aid ease of doing business.
Gold bonds, targeting benami transactions, encouraging cashless transactions, improving disclosure requirements for overseas assets and imposing stiff penalties for non-compliance should lead to higher financial savings and better tax compliance.
The budget ensured social and financial inclusion measures with plans for housing for all with water, sanitation, electricity and road connectivity by 2022, schemes for pension and insurance for weaker sections of the society and plans for quality education and basic healthcare to the doorstep.
Prashant Jain
ED & CIO,
HDFC Mutual Fund
ED & CIO,
HDFC Mutual Fund
