On Wednesday: Finance Minister Arun Jaitley unveiled his annual budget under which he announced on rural area development, infrastructure, and railway. He raised his 2017-18 federal deficit target to 3.2 percent of gross domestic product to cover his spending promises.
Some Analyst reacts over Arun Jaitely announcement:
1.Varun Khandelwal says, "The fiscal deficit bit does not seem very credible. Jaitley is leaving room to exceed it at a later time. I think people will question the fiscal math over the next few days."
"On tax reforms, the only worthy mention, and an intelligent one, is the selective reduction of corporate tax rate for companies below 500 million rupee turnover. This will encourage higher compliance at the lower level of the corporate pyramid where percentage of tax leakages is usually much higher."
2.Tir Thankar Patnaik says, "The fiscal deficit of 3.2 percent missed the target, but laudable efforts nonetheless. Markets should love the lower net borrowing figure of 3.4 trillion rupees.
"On tax reforms, the reduction of the corporate tax for SMEs to 25 percent is very welcome."
3.Sandeep Tandon said, “Government needs to move toward continuous ETFs, divestment,”“Markets will not see any significant fall post Budget.”
4. Motilal Oswal’s Raamdeo told, “Mutual funds will not be impacted much from changes in LTCG Tax. Changes in LTCG taxation would have only temporary blip on investing in equities.”
5.Amitabh Kant, CEO,Niti Aayog,GOI, said, “Biggest challenge for Govt is to create jobs. Demonetisation may hurt India’s growth marginally. Need to ensure digital payment play a critical role going ahead. See a dramatic shift towards digital payment in India. Need huge emphasis on railways, roads. Need to get private sector players to invest in railway stations.”
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