Budget may not appear dynamic but embraces all aspects - expert

Budget may not appear dynamic but embraces all aspects - expert

Mangalore Today News Network

Mangalore, July 21, 2014:  The Union Budget 2014-15 presented by Finance Minister Arun Jaitley recently may not be termed  ‘ordinary budget,’ Management Consultant Jayadev Prasad Moleyar said that the positive side of the budget was in stressing on the income source of the government exchequer which was a point untouched in last five to six years.

The talk on the union budget at a programme organised by Mangalore Productivity Council at SDM Law College July 19, Moleyar said that most part of the budget including allocation was rehtoric, while the important aspect of the budget lies in the government’s expenditure on each sector including the debt, income generation and fiscal deficit.

While the UPA government in its budget spoke about welfare economy and went on introducing a spree of populist measures, there was no mention of the precise sources of income. Increase in expenditure and lack of income generation has led to the troubled Indian economy in which we are today. At this juncture, the government seems to have placed its early  steps in right direction by stressing on income generation. When Arun Jaitley said that the government would push industry, did he mean industry would generate  more employment and bring in more revenue, the speaker observed.

FDI  views:  “Though the budget is not a revolutionary budget, it has touched almost every aspect. It is more appropriate to call it as a ‘salary man’s budget,’ for offering income tax benefits to the salaried class. The government’s policy change in the form of letting the doors open for Foreign Direct Investment (FDI) in defence and insurance, is likely to help the economy.

With India importing 70 to 80 per cent of its defence materials from abroad, it costs the exchequer heavily. FDI allows companies from foreign countries to manufacture defence related materials in India leading to cost cutting. However, it is yet to be known to what extent foreign defence and insurance companies are willing to function in India,” Moleyar said.

He welcomed the Finance Minister’s announcement of initiating e-business platform for making the process of business start-ups hassle-free. It’s success depends on the way the idea is implemented. The FM by not elaborating on subsidy to food, fuel and fertilisers seems to help the troubled economy. But, a clear picture can be obtained based on the decision taken by the new committee that is to be formed to discuss on the subsidy issue. An increase in subsidy will only affect the economy’s growth, he noted. The PM is set to announce some special measures on or about August 15, which are eagerly awaited by all.

On the flipside, he said announcing Rs 100 crores each for making proposals for various projects was not of much benefit. There seemed to be no concrete idea on several newly proposed projects.