Expert panel at a special event at IIMB describes Jaitley's budget as balanced but says despite the hype around manufacturing, policy steps to promote the same are missing
FEBRUARY 28: "This is a good budget from a long-term perspective. It has lofty intentions, but implementation strategies are inadequate and funding is doubtful. Despite the 'Make in India' sloganeering, there are no creative inputs to support this, so manufacturing is unlikely to pick up," declared S Raghavan, former Senior Vice President and Member, Exel Management Committee, Larson and Turbo Ltd.
Observing that short term effects on the economy were not growth oriented, he pointed out that Corporate IT would in fact go up to 34.6% in 2015-16 (AY1617). "Reduction in IT rate and removal of exemptions are likely to increase net IT revenues for the State!" Raghavan further remarked that if constraints on black money transfer abroad did not stop, the outflow expected on infra investments would not happen. He was speaking at a budget analysis event, hosted by IIM Bangalore, on February 28 (Saturday).
The panel discussion centered around macroeconomic aspects, taxation issues, stock market analysis and overall impact of the budget on industry. The panelists included S. Raghavan, former Senior Vice President and Member, Exel Management Committee, Larson and Turbo Ltd., V.K. Viswanathan, Chairman of the Board of Bosch Limited, B.P. Rao from B.P. Rao & Co., Charted Accountants, V Ramu Sharma, Chairman, Bengaluru Commodities Ltd., and Dr. Charan Singh, RBI Chair Professor of Economics, IIMB and moderator of the discussion.
Dr. Charan Singh said it was "an excellent budget", given the policy directions that it has provided to important issues like debt management, monetary policy framework, gold policy, bankruptcy laws, black money and social security. "The clarity on implementation of the goods and services tax, and support to the MSMEs, in terms of finances and skill development are other positive factors. As true for anything, more specifics could have been provided on reduction on subsidies, increasing tax compliance and labor laws," he added.
"Overall, this budget is good for breakfast but short for lunch," remarked Vishwanath V. K. Describing Budget 2015 as "balanced," he said the Finance Minister was walking the talk on stability and non-adversorial tax regime and abolition of wealth tax was quite a bold step but replacing it with an increase in surcharge for super rich may prove counter-productive. Again, he was quick to point out that policy measures to boost Make in India were "half-hearted and inadequate".
"All your intentions are useless until it is implemented" says B P Rao as his view towards the Union Budget 2015. A lot of promises on the infrastructure developments have been announced but there is no information about the resources and the funding towards these projects. The corporate tax is itself vague and there is no clarity on the reduction and the time frame. This budget is very similar and there is nothing new, except a slight change that will do no good unless implemented concludes Rao.
V. Ramu Sharma described it as a "budget that is furthering the cause of Swacch Bharat" through plans to eradicate black money, making it easier to do business in India, and making the country a job creator. However, he did point out that the budget has also increased direct and indirect taxes, and had no specific thrust to stimulate domestic consumption, and hence would do nothing for boosting manufacturing.
Expert panel at a special event at IIMB describes Jaitley's budget as balanced but says despite the hype around manufacturing, policy steps to promote the same are missing
FEBRUARY 28: "This is a good budget from a long-term perspective. It has lofty intentions, but implementation strategies are inadequate and funding is doubtful. Despite the 'Make in India' sloganeering, there are no creative inputs to support this, so manufacturing is unlikely to pick up," declared S Raghavan, former Senior Vice President and Member, Exel Management Committee, Larson and Turbo Ltd.
Observing that short term effects on the economy were not growth oriented, he pointed out that Corporate IT would in fact go up to 34.6% in 2015-16 (AY1617). "Reduction in IT rate and removal of exemptions are likely to increase net IT revenues for the State!" Raghavan further remarked that if constraints on black money transfer abroad did not stop, the outflow expected on infra investments would not happen. He was speaking at a budget analysis event, hosted by IIM Bangalore, on February 28 (Saturday).
The panel discussion centered around macroeconomic aspects, taxation issues, stock market analysis and overall impact of the budget on industry. The panelists included S. Raghavan, former Senior Vice President and Member, Exel Management Committee, Larson and Turbo Ltd., V.K. Viswanathan, Chairman of the Board of Bosch Limited, B.P. Rao from B.P. Rao & Co., Charted Accountants, V Ramu Sharma, Chairman, Bengaluru Commodities Ltd., and Dr. Charan Singh, RBI Chair Professor of Economics, IIMB and moderator of the discussion.
Dr. Charan Singh said it was "an excellent budget", given the policy directions that it has provided to important issues like debt management, monetary policy framework, gold policy, bankruptcy laws, black money and social security. "The clarity on implementation of the goods and services tax, and support to the MSMEs, in terms of finances and skill development are other positive factors. As true for anything, more specifics could have been provided on reduction on subsidies, increasing tax compliance and labor laws," he added.
"Overall, this budget is good for breakfast but short for lunch," remarked Vishwanath V. K. Describing Budget 2015 as "balanced," he said the Finance Minister was walking the talk on stability and non-adversorial tax regime and abolition of wealth tax was quite a bold step but replacing it with an increase in surcharge for super rich may prove counter-productive. Again, he was quick to point out that policy measures to boost Make in India were "half-hearted and inadequate".
"All your intentions are useless until it is implemented" says B P Rao as his view towards the Union Budget 2015. A lot of promises on the infrastructure developments have been announced but there is no information about the resources and the funding towards these projects. The corporate tax is itself vague and there is no clarity on the reduction and the time frame. This budget is very similar and there is nothing new, except a slight change that will do no good unless implemented concludes Rao.
V. Ramu Sharma described it as a "budget that is furthering the cause of Swacch Bharat" through plans to eradicate black money, making it easier to do business in India, and making the country a job creator. However, he did point out that the budget has also increased direct and indirect taxes, and had no specific thrust to stimulate domestic consumption, and hence would do nothing for boosting manufacturing.