Union Budget is positive and balanced

Views of M Murali - MD Shriram Properties

I would say the budget is positive and balanced – a kind of visionary and reformist budget. In India, not much ago, the overall sentiments, particularly the investment sentiment was so doom and gloom. Fortunately we have come out of it. Thanks to the stable Government and reforms envisaged. Investors are seeing India with renewed interest and hope now. There has been dramatic restoration of confidence in macro economic stability. In a situation like this, this is a good budget.

The Economic Survey has projected a growth of 8.1% – 8.4% in FY16 .To accomplish this, the survey has advocated higher Government spends for infrastructure followed by higher private sector participation. Finance Minister in his budget speech has said that Investment in infrastructure will go up by 700 billion rupees in 2015-16 over last year. This is laudable and the move indicates that we are on the proper growth path.

While the Fiscal deficit is seen at 3.9 per cent of GDP in 2015-16, I would also appreciate the approach of keeping fiscal discipline in mind despite need for higher investment.

Bringing in a new bankruptcy code is a good move. As also , creation of a universal social security system for all Indians. Announcement of insurance scheme with Rs 2 lakh cover for accidental death at a premium of just Rs 12 a year, a pension scheme where the government will contribute half the premium for five years are real sops for the poor and less privileged.

Measures towards unearthing and eradication of black money is most welcome in Economy like India.

GST plays a transformative role in the whole of our economic activities .It is heart warming that we can expect implementation of Goods and Services Tax by April 2016.I am sure this will definitely rejuvenate the industry.

As to Real Estates, the industry was keenly waiting to see kind of subsidies, measures or growth stimuli for making the –" house for all by 2022 "-a reality and was looking for various incentives and initiatives at policy levels. I am sure FM will revisit the submissions of the real estate industry.

Source : Equity Bulls

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