The upcoming Budget is expected to set the tone for Modi government 2.0.
The re-election of National Democratic Alliance in the Lok Sabha polls with a thumping majority has paved the way for the Narendra Modi-led government to provide further impetus to the reforms process.
A large part of the industry has been asking for rationalisation and some cuts in the GST rates for select pain points where growth has virtually come to a standstill.
Here's a wishlist from MF honchos:
Jimmy Patel - MD & CEO, Quantum Mutual Fund
--The option to switch from one AMC scheme to another AMC scheme within the same asset class should be made available to investors without any extra cost & tax incidence.
--Revise the definition of "Equity Oriented Funds" (EOF) by including Fund of Funds (FOF) schemes which invest predominantly i.e., 65 percent or more, in units of Equity Oriented Mutual Fund Schemes.
--Taxation of Fixed Income products and bonds if transacted in the capital market to be similar.
--Mutual funds to be permitted along with tax benefit, management of pension funds.
--Fiscal deficit to be controlled and financial discipline to be instilled without falling prey to populist measures.
--Launch large scale Public Infrastructure investment program with a view to create jobs and economic activity at a large scale
--Increase and widen the scope of Rural Development through its Rural Housing, Rural Roads and Farm Development program.
--Simplify both the GST and the Direct Tax system by farming rules and regulations which focus on making it easier for those who are and want to be compliant as against framing rules which try to catch the offender.
--India needs to attract long term capital from long term global investors. Create a positive environment of stability and confidence which will allow long term investors to participate in a bigger manner in the India growth story.
Mehul Jani – Principal, IIFL Mutual Fund
--Focus on generating employment and skill development – There is an urgent need to focus on employment creation for the long term sustainability of growth.
--Encourage private investment across core sectors and sectors which can contribute to a revival of exports (further measures across Make in India/Start up India)
--PSU banks continue to lag private sector peers – there needs to be a roadmap to a) reduce the number of banks by mergers/acquisitions b) improve governance and accountability c) attract the right talent for the long term viability of these institutions
--Increase the capacity of Insolvency and Bankruptcy courts to speed up resolutions and reduce the current backlog
--PSU divestments need to be accelerated – bring down government stakes in various entities to use the resources in more productive areas
--Further rationalisation of GST slabs and rates
--With household savings rates declining there is a need to provide further incentives for savings: eg. Enhance 80C limits for long term savings
--Bring uniformity in the taxation of different savings products (ULIPs and Mutual Funds). LTCG/Switching within schemes of a fund house etc.Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund.
--Some reclassification/re-ordering of GST categories for consumer-facing industries, which are facing softening demand (Such as automobiles and some FMCG firms).
--A small increase in the income tax-exemption limit or minor changes in the slabs.
--Measures to encourage spending on infrastructure (more than measures, we need better accountability regarding timely project completion).
--Measures to provide some respite to the rural sector (Perhaps on the agricultural front or by announcing easier credit terms)