Shri Arun kumar Saraf, President , MCC Chamber of Commerce & Industry feels that the Union Budget 2015-16 has focused mainly on financial inclusion, re-generation of agriculture and functional social security system for the people, especially for the poor and the under-privileged. The Budget reflects considerable scaling of public investment in infrastructure growth like roads, railways and irrigation facilities though an increase of 17,000 crore which will considerably boost up the growth of these sectors.
The Finance Minister has viewed CAD to remain below 1.3 p.c. of GDP in the current year and fiscal deficit at 3.9 p.c. of GDP which is much higher than the standard norm of 2.5 p.c. for a healthy economy. The GDP growth for 2015-16 has been projected at 7.4 p.c. and fiscal deficit at 3.9 p.c.
Shri Saraf, however, feels that the plan for ‘Make in India’ vision of the Prime Minister a success needs further clarity and fine tuning. While Corporate Tax has been reduced to 25 p.c., the existing exemptions and incentives have been withdrawn, making the net tax burden heavier on the corporate sector. The incentives for earning individuals also have not been sufficiently raised to stimulate domestic saving from 30 p.c. at present and create additional market demand. The projected dis-investment is not substantial to create any impact.
Shri Saraf, however, has welcomed the Budget provision that special assistance as given to Andhra Pradesh, would be extended to West Bengal and Bihar also.