Mr. Anil Rego-CEO & Founder Right Horizons

PERSONAL FINANCE:

Mr. Anil Rego, CEO and Founder, Right Horizons

The Union Budget left many with a sour taste, especially with expectations running high. Except for the FBT abolishment, the FM did not address most other ‘expected’ reform areas; in what suspiciously looked like a budget without a long term vision.

Taming Taxes : There was little expectation on the direct taxes, whatever was announced came as a pleasant surprise. While the removal of Fringe benefit Tax was awaited, introduction of GST is the only big tax reform initiative announced during the budget. The euphoria of STPI extension has been marred partially by the hike in MAT! The FM has proposed introduction of a New Tax code in the next 45 days and IT filing is likely to get simpler with the introduction of Saral II.

Overall, on the taxes front, there was not much to complain, since the expectations were low here. The middle class will surely give a thumbs-up for this budget.

Divestment Initiative: Apart from the announcement that Banks and insurance will remain in public sector, there were no divestment initiatives declared. The Economic Survey sent out signals that there could be a hefty chunk of funds targeted from this agenda - During the budget speech, well, nothing happened!

Overall Impact: There was immense pressure on the FM, with a never ending wish list from sectors, investors, corporate alike. However, the fact remains that this budget managed to please only small sections of the audience.

Markets have given their verdict, they are unhappy! It is to be seen whether there is a sustained downturn over the next few days.  Our view is that the government should try and address long term reforms rather than be a means of providing freebies in the budget that only impact fiscal deficit.  To that extent we are not disappointed.  We believe that a Bharat focused budget is important in the long term so as to bring all round development.  Infrastructure focus is also important to bring the economy back on track.  We hope credit availability is ensured through other monetary measures so as to infuse growth.  We believe that the budget is only one of the steps in the reform process.  We hope to see well thought out follow on reforms like divestment & more importantly reforms in public sector organizations, reduction of subsidies, enhanced infrastructure focus, strengthening of the banking sector, education sector reforms etc in the coming days.