Fo­cus on Re­viv­ing Con­sump­tion and Pro­duc­tiv­ity

More money for con­sumers, in­vest­ments and so­cial sec­tor EX­PERT TAKE

The Economic Times - - Front Page -

as­sets of ab­scon­ders and il­le­gal pub­lic de­posits by Ponzi schemes will go a long way in im­prov­ing the non-performing as­set sit­u­a­tion.

Tax cuts at the base level will keep more money in the hands of con­sumers and boost con­sump­tion.

TheBud­geth­as­fo­cuse­donim­provi n g p r o d u c t iv i t y. T h r o u g h MGNREGA, the gov­ern­ment has deep­ened 10 lakh ponds and made 10,000 com­pos­ite posts. It is far more ben­e­fi­cial than dig­ging holes and fill­ing it. The Fasal Bima Yo­jna, Soil Health cards, and com­bined spot and de­riv­a­tives in the com­modi­ties mar­ket and elec­tronic mar­ket place (E–NAM) will im­prove ef­fi­cien­cies in the agri­cul­ture and ru­ral sec­tors.

From a debt-mar­ket stand­point, the con­tained gross and net bor­row­ing­pro­gram­mewil­lal­lowRBI­to­cut rates later in the week.

From the eq­uity-mar­ket per­spec­tive, this Bud­get fo­cuses on re­viv­ing con­sump­tion and ru­ral econ­omy post-de­mon­eti­sa­tion. Con­tin­ued im­pe­tus on in­fra­struc­ture cre­ation also au­gurs well. Over­all, the FY18 Bud­get is ahead of ex­pec­ta­tions, with more money in the hands of the cons u mer, h i g h e r t a x r eve nue through bet­ter tax com­pli­ance, higher growth in capex, and the gov­ern­ment’s in­tent to main­tain the path of fis­cal pru­dence.

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