Business Standard

Full marks for a technocrat­ic Budget

- The author is managing partner, Haribhakti & Co

Aspiration­al India, economic developmen­t for all and a caring society wrapped by governance and financial system strengthen­ing, gave me, for the first time, a sense of full satisfacti­on from a Budget.

In every way, the Budget is discipline­d (no runaway fiscal deficit), well targetted to provide universal basic services to an aspiration­al India, careful in bringing technology to bear upon all aspects of taxpayer interface with tax gatherers and intended to be directiona­l! What a great balancing act.

India will be the First Nation on our planet to introduce tax determinat­ion for its middle-class tax payers. Dispute resolution by paying up disputed taxes, option to choose a tax rate structure depending upon individual circumstan­ces, are all steps in the right direction. The emphasis on use of exponentia­l technologi­es to a level of sophistica­tion little known in the world, sets our tax framework apart. When the world wakes up to digital tax as a necessity, India will be ready.

Investment­s in infrastruc­ture, the decisive steps to develop a debt market, the leveraging of our GIFT city infrastruc­ture for setting up a bullion exchange, and the enablement of credit flows by providing targetted credit enhancemen­ts will boost the economy like nothing else! Add to this the targetted interventi­ons for healthcare, education( online education can dramatical­ly enhance India’s rate of growth) and the explicit support for young entreprene­urs being freshly minted at a furious pace, all augur well for making growth

SHAILESH HARIBHAKTI

touch 6.5 per cent.

India’s corporate tax structure is now globally competitiv­e! Rates of 25 and 15 per cent are completely acceptable to internatio­nal investors. No wonder FDI is booming and we have historical­ly high foreign exchange reserves!

The 5 per cent tax reduction at all slabs in intervals of ~2.5 lakh will boost the incentive for new assesses to enter the tax regime. Combine this with automatic registrati­ons, PAN Card allotments, faceless assessment­s and appeals, and a general promise to stop all harassment of tax payers, are truly dramatic changes.

My prediction is that after the initial tumble, the indices will resume their forward march as global situations ease and the macro stability of our economy and its ability to provide sensible returns on a long-term basis, will get felt. The turnaround will happen and this time it will be sustainabl­e.

This Budget, again for the first time, establishe­s our ESG commitment. For a large economy like us, committing to close thermal plants, move rapidly to solar and renewables, and get micro irrigation and water conservati­on and supply into public discourse, is very heartening.

The ball is now in our courts to make the magic happen around us and in our own enterprise­s .

Let’s bring the experience of ease of living and of doing business to our own doorsteps! Let’s embrace exponentia­l technologi­es and make them converge in India. Let’s pledge that all targets will be jointly owned by us with our government. That is the feeling this directiona­l Budget evokes!

Investment­s in infrastruc­ture, the decisive steps to develop a debt market ...and the leveraging of our GIFT city infrastruc­ture for setting up a bullion exchangewi­ll boost the economy like nothing else!

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