Market Cheers up for the Budget
Finance Minister Arun Jaitely presented the Union Budget 2017-18 today in Parliament. This is his fourth budget under NDA government .Budget increased spending on rural areas, agriculture, infrastructure and railways reforms FM Minister focus on long term benefits of demonetization the current effects is transitional .
Budget key focus area was Tax transparency, clean and clear Transactions, Benefits for the disadvantage and poor’s. Minister takes government bold and decisive strike further by curbing any Cash transaction upto 3 lakhs only. Political parties can have cash in 2000 from any source and above this amount all transactions will be digital focusing on lower corruption and transparence in political parties funding.
Market was too optimistic on the budget .However There was not much big announcement for long term capital gain tax. Reduction in income tax rate provides much needed relief to the tax payers. As promised by the government dedicated fund to the agriculture sector which is severely affected by the demonetization . Further government allocated Rs3.96 lakh crore for infrastructure. For banks struggling with NPAs and Bad debts big announcement comes in the form of Rs 10,000 crore to be invested to recapitalize the banks .
The fiscal deficit is targeted at 3.2% for 2017-18 and 3% for the next year. Revenue deficit to be reduced to 2.1 percent from 2.3 percent for 2016-2017. The budget appreciated by Moody, global rating agency on its fiscal prudence giving positive outlook for the Indian economy.