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Good budget, but should have focused more on growth: Sudesh Menon, CEO, Waterlife

The government has done a good thing by prioritising fiscal prudence over aggressive growth. The decision to peg deficit at 3.5 per cent especially amidst global volatility and our own banks not in great shape is a good one.

Sudesh Menon        Last Updated: February 29, 2016  | 18:03 IST
Sudesh Menon, CEO, Waterlife

The government has done a good thing by prioritising fiscal prudence over aggressive growth. The decision to peg deficit at 3.5 per cent especially amidst global volatility and our own banks not in great shape is a good one.

The focus has been on rural growth and infrastructure development - both very sound moves. The moves to have different credit rating mechanisms for infra companies against standard perceptions would be a welcome move - for infra companies riddled with debt. Development of roadways and the capital of 50k + 15 k crore allocated to highways is commendable.

Good follow up on the start-up initiatives and culture - MUDRA bank allocation of Rs 1.8 lakh crore, tax exemption for start-ups and a lower tax rate for smaller companies, no capital gain tax if reinvested should be welcome moves to kick in the start-up culture.

Bank recapitalisation is necessary - but Rs 25,000 crore for this might prove far less….it could mean M&As on the anvil for PSUs.
Not a lot of great news for the big industry and automobiles - also hope FDI goes into equity than bonds - as equity only can rev up the "Start-up" and the "Make in India' concepts.

Overall a good budget - pro the social classes. But I was expecting this Budget after 1-2 years and not this year - this year should have been very fast growth, as it is growth that can deliver on "inequality issues" more than a "leftist budget". Pickety will like this budget…
Also, the increased outlays for Rural Infra and Growth is a great move…govt has allocated about Rs 1.1 lakh crore on rural development and drinking water, which is a great move. Hope the state governments will use this money effectively to provide safe water to millions of people…

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