Focus on Reviving Consumption and Productivity
More money for consumers, investments and social sector EXPERT TAKE
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.