A people's budget that aims to spur the rural economy that is lagging far behind the urban growth momentum. Infra and Agri are the two key sectors that are beneficiaries of Budget 2016.
However, it is vital that both infra projects and agri procurement be time bound in their implementation or else the intended benefits will not happen.
The salaried class are also beneficiaries by way of higher permissible tax deductions for home loans, health insurance, education loans. This is hoped to increase domestic consumption.
So overall, a reasonable budget to drive inclusive economic growth.
However, I see no boost to investment in manufacturing. Also disappointed to note there is no increased allocation to S&T.
R&D-driven businesses will be impacted by reduction of weighted tax deduction from 200 to 150 per cent but positive on introduction of patent box regime at 10 per cent tax rate for income attributable to patents/IP.