WILL THIS BUD­GET SPUR GROWTH? IF YES, HOW? IF NOT, WHY NOT?

India Today - - COVER STORY -

AD.K. JOSHI

Only mild sup­port to growth via tax con­ces­sions to the small tax­payer, ru­ral spend­ing and in­creased cap­i­tal spend­ing

ASHIMA GOYAL

The con­sump­tion and gov­ern­ment ex­pen­di­ture stim­u­lus will help growth, but the pri­vate in­vest­ment and credit growth slow­down will take time to re­verse

USHA THO­RAT

Mea­sures for im­proved con­sump­tion and in­vest­ment ex­pen­di­ture, cou­pled with lower mar­ket bor­row­ing can spur growth

ADITI NAYAR

In light of the slow­down in GDP growth af­ter the note ban, the Union Bud­get for FY2018 has made a con­certed ef­fort to stim­u­late eco­nomic ac­tiv­ity, through a com­bi­na­tion of mod­est tax cuts and higher spend­ing, par­tic­u­larly on pro­duc­tive sec­tors such as trans­port and ru­ral in­fra­struc­ture, which have a healthy mul­ti­plier im­pact. The re­duc­tion in the cor­po­rate tax rate for firms with a turnover be­low Rs 50 crore to 25 per cent from 30 per cent will im­prove their com­pet­i­tive­ness and level the play­ing field with big­ger firms

N.R. BHANUMURTHY

Achiev­ing higher growth and at the same time stick­ing to FRBM tar­gets was al­ways chal­leng­ing. In the past, we have seen that while the fis­cal deficit tar­get was achieved as per the FRBM, cap­i­tal ex­pen­di­ture (as % of GDP) de­clined. This year, even af­ter re­lax­ing the fis­cal deficit tar­get of 3 per cent, we see the cap­i­tal ex­pen­di­ture tar­get also up to 1.3 per cent from 1.1 per cent last year. This it­self should spur growth. But, most im­por­tantly, the tax and in­ter­est in­cen­tives given to MSME and agri­cul­ture sec­tors, to­gether with in­crease in credit al­lo­ca­tion, should help achieve growth that en­hances jobs op­por­tu­ni­ties. The only con­tra­dic­tion here is that the gov­ern­ment it­self says that in­dus­trial growth in FY18 will be much lower than in FY17!

RA­JIV KU­MAR

It will surely spur growth be­cause of its 24 per cent in­crease in ru­ral out­lay and push to agri­cul­tural in­comes

ASHOK GU­LATI

Yes, it should help pro­pel growth as in­vest­ments are the cen­tral piece of this bud­get

NAUSHAD FORBES

Yes, the sub­stan­tial in­crease in ru­ral in­vest­ment and tax breaks at the bot­tom of the per­sonal in­come tax pyra­mid should boost de­mand widely, lead­ing to a vir­tu­ous cy­cle of de­mand driv­ing in­vest­ment

SAMIRAN CHAKRABORTY

To­tal ex­pen­di­ture growth of 7 per cent is not large enough to change our (Citibank) growth pro­jec­tions at the mo­ment. How­ever, if rev­enue growth sur­prises are on the up­side, then there could be a fur­ther ex­pen­di­ture push

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