Budget 2012: What it means for new economy

Rs 5,000-crore Venture Fund for Small Businesses

This will be the largest pool of equity capital for early stage companies and can signifi cantly boost entrepreneurship. However, instead of the SIDBI administering the fund, the government could have used it as a nodal agency to channel money to independent venture funds.

Tax Sop for VC Funds

The removal of sectoral restrictions and extension of the tax pass-through have solved commercial and tax administration issues. Even so, investments by venture funds are driven by potential returns and not tax benefits.


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Flagship Aadhaar Project Gets More Money

Technology providers can expect more orders as the government will spend more than Rs 14,000 crore on the Aadhaar project and use the platform to plug subsidy leakages.