Budget 2019: Reacting to Finance Minister Nirmala Sitharaman's first budget, tycoon Anand Mahindra said though he was hoping the first full-time FM of the country would "hit some boundaries" but she chose to take "steady singles" instead. Mahindra & Mahindra Chairman said despite expectations of big moves to unleash the animal spirit of the economy, the Modi government's budget focussed on a long-term vision.
Tweeted earlier that I was hoping @nsitharaman ji would 'hit some boundaries.' She chose instead to take steady singles & keep the run-rate moving. Despite expectations of big moves to instantly crank-up the economy she decided to keep her eye firmly on the long term; (1/6)- anand mahindra (@anandmahindra) July 5, 2019
FM Sitharaman, in a press conference after her budget speech on Friday, had maintained that Budget 2019 was made keeping in mind the Modi government's "10-year vision". Appreciating Sitharaman and her team, PM Modi also termed it a "citizen friendly, development friendly and future-oriented" budget. He said Budget 2019 would help the country uplift the poor and lay the foundation of a better future for youngsters.
Anand Mahindra said Sitharaman's budget would help the country in its journey to becoming a $5-trillion economy. Talking about the Goods and Services Tax (GST) on passenger vehicles, he said: "Instead of lowering GST on all cars, she aligned with the vision for mobility & incentivised only. In fact, the budget is an accumulation of seemingly unspectacular moves that'll NUDGE the economy onto a trajectory toward $5T & an improved 'ease of living'," he said.
He also said the steps taken to improve the condition of the financial sector were indeed "big moves", which could give a push to the slowing economy. "...the measures for the financial sector are indeed big moves & could lubricate the engines of the economy," the businessman opined.
But the measures for the financial sector are indeed big moves & could lubricate the engines of the economy. The one-time cover for pooled assets is an efficient solution for NBFC liquidity. The target for disinvestment is welcome. Now we need swift implementation...(3/6)- anand mahindra (@anandmahindra) July 5, 2019
He said the government had put more emphasis on providing incentives to big and new-age projects as they are the biggest employment generators. "And there is a 'bi-focal' bias towards incentives for large-scale, new-age, FDI-funded manufacturing projects on the one hand & start-up entrepreneurs on the other. It's true that these two sectors have high employment generation potential," said Mahindra.
So what will revive 'animal spirits' of the Indian economy?' Mahindra said: "...If the strong messages about respect for wealth-creators are echoed by all branches of Govt. & the 'Faceless' e-assessment is implemented both in letter & spirit it'll go a long way in building a true partnership with private enterprise."
He said that increased income taxes spooked the markets but the introduction of estate duty would've been more "unnerving". "Finally, the elephant analogy was most apt. If it no longer tramples on our mounds of rice, private confidence, investment and the markets will all rebound," added Mahindra.
The Modi government announced its first full budget after its re-election in the 2019 Lok Sabha elections, which concluded in May. Before this, then interim finance minister Piyush Goyal had announced the government's interim budget in February.
Edited by Manoj Sharma