Post Budget Analysis

IIIM organized post-budget analysis on February 8, 2017. The discussion had some eminent speakers from the industry and academia.

Prof. C.S. Barla,Ex. Prof., HOD Economics, University of Rajasthan, Prof. Laxminarayan Nathuramka,Senior Economist, Mr. Hitesh Dhanuka (Charted Accountant),Director, Dhanuka Colonizers and Builders Pvt. Ltd., Ms. Aparna Sahay,Retired Additional Director and Registrar at Centre for Management Studies, HCM, Rajasthan State Institute of Public Administration and Mr. Sandeep Jain, Director, Tradeswift Broking Pvt. Ltd., were amongst the eminent panelists who presented their views on the latest budget.

Prof. C.S Barla, Chaired the panel, he started the discussion by stating three problems faced by world economy – Unemployment, Poverty and Corruption, and told every government in their budget should endeavour to curb these basic problems for securing overall economic growth.

Mr. Hitesh Dhanuka highlighted the fine points of the budget and shared that the budget can be considered as ‘stable budget with least volatility’, though he also told that a single budget can’t be a game changer for an economy like India. He opined that judging growth of India by means of estimated Gross Domestic Product (GDP) appears to be a vague concept, rather Gross Value Added (GVA) is a more appropriate tool to measure growth. He also emphasized that budget has augmented the limit of tax exemption for new startups from Five years to Seven years, hence increasing opportunities for Indian youth. Given the context, the Finance Minister has managed to maintain a fair balance between addressing concerns raised by foreign investors along with introducing further rationalization and anti-abuse provisions as part of the Budget. He informed about the impact of Goods and Service Tax in general and shared that in the long-run it will bring down the cost of operations for businessman and final prices for the consumer. He also talked about the attention Govt. has paid on affordable housing facilities in India and measures taken to fight the problem of housing. He drew attention to the fact that the proportion of budget allocated to defense as compared to Health and Education is imbalanced. He opined Health and Education sectorsrequire greater emphasis. He acquainted participants with the tax saving schemes like NPS (New Pension Scheme) and other 80CCD2 benefits.

Prof. Laxminarayan Nathuramka shared varied views of different economists and highlighted the strengths and weaknesses of the budget. He termed the recent budget as ‘Traditional budget’. He told that increasing capital expenditure by 25% is a great step towards increasing productivity of the nation. He said that generating revenue for the economy is still challenging which needs an immediate solution. He commented on the demonetization also and shared that in the recent budget, no link can be found in regard to demonetization and overall growth objectives of the country. He told that NITI Ayog (National Institution for Transforming India) is required to play a pivotal role in designing a sustainable development model of the country.

Ms. Aparna Sahay said, “Budget 2016-17 is well-balanced” and comprehensively addresses all aspects that industry was looking for, including revitalizing the rural economy, infrastructure build-up, relief for stressed assets, and simplification of taxes. She threw light on agriculture sector and opined that budget will give a fillip to the farm and allied sector even as they urged for better implementation of schemes. She also said that higher spend on MGNREGS and rural roads can increase employment opportunities and help creating productive assets for rural areas. She appreciated the focus in the budget on irrigation and crop insurance to help mitigate risk of farming.

Mr. Sandeep Jain said that the budget also reflects and imbibes the government’s thrust to the core areas of pushing infrastructure development, creation of new jobs and importantly, the ease of doing business. The budget also encompasses necessary measures of relief to small tax payers.  He veryenthusiasticallypointed out in the history of India; this is one of the budgets which has not shown dwindling impact on Sensex, rather depicted a rise in the barometer. He told that budget has been framed in such a way that it has increased awareness about Corporate Governance and compliance in general which is good for an economy. He appreciated endeavours of the government to make economy cashless and emphasizing e-monetization. He encouraged students to plan their savings and investing into proper channels to increase their wealth.

Prof. C.S Barla, said that a budget is an annual ritual, the aim of which is to spur growth of the economy. He summarized the proceedings of the session and told that still there is wider scope for government to look deeper into the social inequalities of masses leading to increase in crime and dissatisfaction. He shared that this budget has been a progressive Budget and has tried to balance that with counter-measures for preventing tax abuse. He appreciated government for framing policies for skill development that would certainly help in reducing unemployment.

Students were also given opportunity to raise queries to seek response from panelist and got a deeper perspective of recent budget.