“The Budget is twin focussed on Agri and Infrastructure. The Finance Minister has created a credible menu of allocation for initiatives like, irrigation (PMKSY), emarket place for agri wholesale, rural infrastructure (PMGSY), MNREGA, social welfare (healthcare) etc. to effectively grease the wheels of the rural economy, with aggregate spending in excess of Rs 87000 crores. It will augur well if implemented effectively and will surely kick-start the economy and rural demand.
On the other hand the additional levies including Infrastructure Cess will create an additional burden on the corporates, however, it would be a very small price to pay for a bigger growth agenda.
The fiscal rectitude shown in containing both the deficit and the GoI borrowings, augurs well for the interest rate scenario, and will be hopefully followed through by the RBI soon.”