The government is giving a push to spending but from where will the funds come from, wonders R Shankar Raman of L&T. He also said, the government is betting big on wider tax base as one of the funding mechanisms.
A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation.
While the industry expected exemption from Minimum Alternate Tax (MAT), it has accepted the provision to allow MAT credit to be carried forward from 10 years to 15 years as a positive step forward.
The capital outlay for the three defence services for the purchase of new equipment, weapons, aircraft, warships and other military vehicles stood at Rs 86,488 crore for 2016-17 as compared to Rs 78,586 crore for this fiscal.
In an interview to CNBC-TV18‘s Surabhi Upadhyay, Sanjay Tolia, Partner Tax at PwC, Samir Kanabar, Partner at EY, Feroze Azeez, Deputy CEO, Anand Rathi Private Wealth and Nitin Jain, CEO, Global Asset Management at Edelweiss shared their views on what does this Budget mean for your personal wealth, taxes and your life as a common citizen of India.
Almost all the associations and bodies representing commerce and industry welcomed the introduction of Trade Infrastructure Export Scheme with an allocation of Rs 3.96 lakh crore, which will help the Indian exporters to become globally competitive.
The Budget has allocated Rs 3.96 trillion to infra sector to spur economic activities and create more jobs and has also accorded infrastructure status to affordable housing projects which will give lot of tax incentives to the players.
The Minister also proposed to reduce the time for completion of scrutiny assessments from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019-20 and thereafter.
In the Union Budget for the fiscal 2017-18 announced by Finance Minister Arun Jaitley today, Ayush Ministry has been allocated Rs 1,428.65 crore for the financial year, starting April 1 this year.
The ministers also lauded Finance Minister Arun Jaitley for offering "many" concessions to honest tax payers, while tightening the noose around those evading taxes and fleeing the country.
"No bad news on long term capital gains tax is relief for equity investors. Overall, Union Budget is positive for economy in general and equity markets in particular," said Sharekhan research head Gaurav Dua.
Noting that the Finance Minister has shown fiscal prudence by keeping the Fiscal deficit target at 3.2 percent, she has rated the budget "overall a 7/10".
Reacting to the proposals in the Budget presented by Finance Minister Arun Jaitley today, he praised the Centre's move to bring "much-needed" reforms in political funding by making political parties file income tax returns, and lowering the maximum cash donation received by any party from one source to only Rs 2,000 from Rs 20,000.
Dinanath Dubhashi, Managing Director, L&T Financial Services is of the view that it‘s a fiscally prudent Budget despite being "expansionary" in right directions.
"Focus on farmers, infrastructure and digital economy will create transparency and will have an overall positive sentiment in the market," PNG Jewellers Chairman and Managing Director and India Bullion and Jewellers Association (IBJA) Saurabh Gadgil told PTI here.
Giving a boost to clean energy programme, Finance Minister Arun Jaitley today proposed massive cuts in excise and customs duties on materials used in solar and wind plants, and also announced the second phase of solar park development for 20 GW capacity.
Rupee-denominated offshore bonds, popularly known as masala bonds, today got a tax benefit boost with the Union Budget exempting them from taxation for transfer among non-residents, while a low rate of 5 percent will apply for investors till 2020.
Aiming to double farmers' income by 2022, the government today increased agri-credit target by 11 percent to Rs 10 lakh crore for next fiscal and announced two dedicated funds with a corpus of Rs 13,000 crore to promote micro irrigation and dairy processing.
"The Budget focuses a lot on the rural and agriculture sector. Though the thrust on digital continues, reforms announced in the Budget will generate employment and help in doubling farmers income," chairman Harsh Kumar Bhanwala told PTI.
Although no major reforms were announced, plans to amend Drugs and Cosmetics Rules, formulate new norms for medical devices and taking steps for strengthening medical education will reduce healthcare cost for the masses, industry players today said.
K Ravichandran, Group Head, Corporate Sector ratings at ICRA is of the view that Union Budget has several favourable proposals for the oil & gas sector such as creation of two more strategic oil reserve projects, reduction in basic customs duty (BCD) on LNG from 5 percent to 2.5 percent and creation of an integrated oil PSU major.
The amount budgeted for 'Indira Gandhi Matritva Sahyog Yojana' saw a four times jump with Rs 2,700 crore being set aside this year as compared to Rs 634 crore in 2016-17. As per this scheme Rs 6,000 will be provided for mothers who seek institutionalised delivery and vaccination.
According to Sunil Mishra, Chief Strategy Officer at PropTiger.com, Union Budget 2017 has been cautious while the standalone sector being the real estate.
The budget is expected to bring positive impact on job market as the focus on infrastructure and ease of doing business is aligned with the government's vision of job creation, experts say.
Chhattisgarh Chief Minister Raman Singh praised the Union Budget presented today in Parliament, saying it is in accordance with Prime Minister Narendra Modi's vision of 'Sabke Saath Sabka Vikas'.