“This is a Bold budget by the government, keeping in view longer-term fiscal prudence. With no easy giveaways, it focuses on a longer, more sustainable path of job creation through manufacturing in the country and a strengthened role of the MSMEs. Skilling the youth, formalising job creation, continued infrastructure spending, and urban development, along with the climate of enhanced local capex spending will encourage the private sector to join in, given under levered balance sheets. This is a longer, more sure way to enhance employment and sustainable consumption.
The key to unlocking the full potential will be execution on the ground and simplification of a plethora of taxes and compliances, as promised. Fiscal consolidation is a great signal to foreign and local investors and, hopefully, a more robust local bond market, crowding in private savings and improving the rate structure. Abolishing the angel tax is a much-welcome move, addressing a long-standing demand by the startup segment.”
