Finance Minister Arun Jaitley's budget on Monday nnouncing a string of farm measures, help for the rural sector and a clutch of social welfare programmes. Though the markets reacted with dismay, the corporate sector seemed not too unhappy with the FM's proposals.
Deepak Parekh, Chairman, HDFC: I think the FM has done the right thing and financial prudence is the name of the game. 3.5 percent limit and has stuck to it despite global and domestic headwinds. I am not sure why the market is so disappointed. People who earn more must pay more taxes. If you earn more than 10 lakhs, you have to pay 10 percent tax.
Sameer Arora, Fund Manager, Helios Capital Management: This govt is anti-gold, anti-cigarettes. Why don’t people grasp it. It is clear policy of the government.
Uday Kotak, Executive Vice Chairman and Managing Director of Kotak Mahindra Bank: 3.5 per cent fiscal deficit and has the courage to control it is a very significant things in Indian bond market. It is a huge relief for the bond market.
C Rangarajan, ex-RBI governor: Contain fiscal deficit at three percent. There are a number of schemes that will increase public expenditure through capital expenditure and other schemes. The FM is not clear with regard to the provision implicit in the Pay Commission which is not fully implemented. In terms of the country, this is a signal of stability of the tax regime. The acceptance of simplification of tax measures is an improvement of the Easwar Committee.
Jayant Sinha, MoS, Finance: The GDP is strong because urban consumption has remained strong. We need to deliver on rural consumption too. In the current year, whatever we wanted to achieve on actual consumption, we have achieved that. In the markets, everyone gets fixated on the number. What is important is the commitment that we will provide to the banks whatever is required. The Bank Board Bureau has been established and Vinod Rai will be heading it. We also said that there will be consolidation of the public sector banks.There are 27 public sector banks. The roadmap is going to come from the Bank Board Bureau who understand the competitive landscape. Intent is to pass the GST Bill as soon as possible. We are very hopeful to be able to pass it soon.
Dr. Harsh Kumar Bhanwala, Chairman, NABARD : Allocation to agriculture is a major booster to Rural India. Irrigation bonds is a major positive move. Higher allocation to irrigation will contribute to farmers' productivity.
R Shankar Raman, Executive Vice President ( Finance), Larsen & Toubro Ltd : Some sectors received expected attention like transportation, for instance. However, the government grudgingly recognizes the need of the private sector for PPP. The success of the non tax revenues to go up Rs 70,000 crore is a wild card. The tax rates have not been significantly altered. Payment of tax on dividend has been a long-standing requirement of a quarter which was a bold step by the goverment. The one lakh crore increase on tax revenues can happen only if there is an increase in job creation.