Tuesday, March 1, 2016

Quote from IIM Kozhikode on Union Budget

Prof Rudra Sensarma, Associate Professor of Economics, IIM Kozhikode
“This is a budget for the long haul that may disappoint in the short run. I am disappointed by the lack of breakthrough ideas and the total abandonment of disinvestment policy. The increases in service tax and cess are bad ideas unless they have been introduced as intermediate steps towards the higher rates that will result under GST. However, I would describe this as an underwhelming workman-like budget. The biggest positive is that the fiscal deficit glide path remains unchanged, which bolsters the government’s credibility. Infrastructure sector has got a huge boost as we have come to expect from this government. There are big positives for the rural sector by way of increased MNREGA allocation, rural electrification, farm loan interest subvention etc. Jobcreation gets a leg-up with the corporate tax cut for MSMEs and tax exemption for startups.”

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