CLEAR FOCUS ON NATION BUILDING
Iendorse the Central Government’s vision of a financially inclusive and digitally enabled India, reflected in the Union Budget 2017-18. This year’s Budget has been path-breaking in its design intended to enhance administrative efficiency and eliminate redundancies in the system. The Budget encapsulates the most pressing aspects of the country, as outlined by the Finance Minister in his 10 themes.
There is a clear focus on nation building. `10,000 crore has been allocated towards agricultural credit, a sector which has suffered from much strife in the last few years. The PMFBY envisages protection of 40% of cropped area in the coming financial year and 50% in the next. GIC Re has been working closely with the Government of India and direct insurers in this field.
There is an increased push on infrastructure development with a record `3,96,135 crore allocated towards it, which includes spending on railways, roadways, clean energy, transportation and telecommunications. Classification of affordable housing as infrastructure will give it much needed impetus.
The common man stands to benefit from the reduction in personal Income Tax rate. Businesses stand to gain from the reduction in corporate tax rate for SMEs. Start-ups can rejoice at the enhanced flexibility in availing a three-year tax holiday.
The increased usage of technology, as a means to reach the remotest citizen and track illicit wealth, is yet another exemplary move. Digital payments will play a huge role in financial inclusion and we are ready to assist all stakeholders in the evolving area of cyber insurance, which is a direct corollary of this measure.
The Finance Minister has identified Railway public sector enterprises this time for disinvestment. This is a welcome move as it will increase accountability, efficiency and boost profitability of these companies. The disinvestment of public sector insurers is on track and the market will, in all likelihood, witness some listings in the ensuing financial year.
The Government’s commitment towards fiscal discipline must also be appreciated. The Finance Minister has fixed a fiscal deficit target of 3.2% for FY 2017-18 and 3% for the following year. This is in spite of global headwinds, an adverse economic outlook and shrinking private sector capital expenditure, all of which can induce heavy government spending to revitalise the economy.
In summary, it is a carefully-planned Budget, designed to benefit all sets and subsets of the country. The writer is the CMD, General Insurance Corporation of India