Business Today spoke to Landmark Holdings Chairman Gaurav Dalmia about his expectations from Finance Minister Arun Jaitley's maiden budget -
1. Show a clear path to 7-7.5 per cent GDP growth, which I believe is a natural level of growth for India, given the historical trend of 30 per cent investment rate and a historical incremental capital output ratio of 4, though this has a slight upward trend, which means for incremental investment, the kicker to growth may be slightly lower than our past experience.
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2. Streamline taxation, including widening of tax net and a zero-tolerance policy towards black money. There is way too much complication, confusion and corruption embedded in the tax machinery.
3. Better management of government finances; focus on the deficit. This is our biggest macroeconomic weakness and the root cause of many other problems. Two factors stand out here: One, the management of agriculture and food and how the related distortions and inefficiencies of the government procurement systems and incentives will be removed. Two, the deficit projections must be based on benign market conditions, and not on optimistic forecasts, which was the mistake the UPA had made.
- As told to Sarika Malhotra