Under intense expectations, Honourable FM has presented a budget that addresses crucial areas of the economy and has planned for building capacities as well as capabilities. The pursuit of growth aimed at double digit in near future is to be attained along with fiscal consolidation, thus ensuring its sustainability
It is heartening that Infrastructure sector initiatives have been given a major thrust, which will both spur the domestic demand and ease the supply side constraints with an increase of investment of Rs.70,000 crore in 2015-16 over 2014-15. Setting up of 5 Ultra Mega Power Projects and announcement of similar projects for roads, rail and ports along with rural and urban housing development will also provide a fillip to the economy. All these measures will see a boost in demand for construction materials such as steel and cement, which have witnessed subdued growth on account of sluggish global as well as domestic market conditions in the recent times.
A low and stable corporate tax regime by bringing the corporate income tax down from 30% to 25% is also a very welcome measure which will improve business sentiments and rejuvenate the corporate sector. The announcement on new bankruptcy code to replace BIFR and SICA are reform measures much awaited.
Mr C.S. Verma
