Industry & Economy
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Budget
A good Budget, but not a path-breaking one
Great expectations have been built up in the run up to the Union Budget. Path-breaking and giant steps are needed to meet great expectations. Though the Budget was benign, it has not taken any path-breaking steps. About 144 per cent increase in the outlay for NREGS, substantial increase in the outlay for rural housing, rural health and other social sector schemes are steps in the right direction to boost domestic consumption as well as for inclusive growth. The
modest increase in the personal income-tax exemption limit and the removal surcharge will also increase disposable incomes and thereby lead to higher consumption and growth.
About 23 per cent increase in the plan outlay for NHAI road projects, 59 per cent increase in the outlay for rural electrification projects, substantial increase in the outlay for irrigation projects etc will lead to higher infrastructure spending, thereby giving a stimulus to the economy. Maintaining the excise duty and service tax rates at the same earlier reduced 8 per cent and 10 per cent, respectively, is also benign.
The Budget has no measures to encourage housing sector.
It has also not unveiled any roadmap on important steps such as modernisation of agriculture sector, pension sector reforms and creation of a long-term debt market for infrastructure sector financing.
V. Venkateswara Rao, Hyderabad
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