A Budget displays the philosophy of the ruling Government. Demonetisation has affected growth to some extent. It is good or bad one has to decide. Cash economy is a reality in India, said Income Tax Commissioner Sarat Chandra Dash at a seminar on “PWC Union Budget 2017 analysis: On the Growth Path” organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with PWC here on Wednesday.
FICCI Odisha State Council chairman Subhrakant Panda said it is truly a path-breaking Budget with several firsts. An effort has been made to play with a straight bat and cleanse the economy. The biggest take away from this Budget is the reform introduced in the area of political funding. The demonetisation move of the Government was an attack on the stock of black money and the measures announced in the Budget on electoral funding will help attack the root cause of corruption in India, Panda said.
He said with the inclusion of the Railway Budget in the main Budget, the Government has been able to focus on the development of the transport network within the country in an integrated manner. The major plans as outlined by the Finance Minister on infrastructure development will help improve the service quality as well as bring greater efficiency in the operations of the railway, ports, roads and highways.
Another plus in the infrastructure sector is the extension of infrastructure status to affordable housing segment. Housing sector is a force multiplier with its linkages to almost 200 industries across the economy. FICCI had strongly advocated for special recognition of this potential and thanks to the Government for having made this move, Panda said further.
Prof DV Ramana said understanding the Budget is not understanding the numbers but the philosophy behind the numbers. In 2016, the Budget’s motive was to transform while in 2017 it is transform, energise, and clean. There is consistency in the agenda. The Government has focused on farmers, youths and higher education. While the farmers’ income can be doubled in a span of five years there is no Indian Institute in the top 200 in the world. Research is lacking in higher education. The industry should act pro-actively to bridge the gap with academic institutions.
NPA is still a big problem. Giving the example of Indian Overseas Bank, he said one- fifth of the loans of the bank have turned bad. But the old management has not been changed. The starters take more loans than required. The twin balance sheets of corporate and banks should be addressed. Misallocation of funds will not make the country grow and develop, said Ramana.
PWC’s partner Manish Sheth said “We are a non-tax paying society in India. We have to progress to a tax complaint society.”Among others, PWC partner Pulak Saha also spoke. FICCI Odisha State Council chairman Vivek Pattanayak making the concluding remarks said MSME is the answer, minimum investment with maximum results.