Budget 2016 positive for most areas of the economy: Shanti Ekambaram, Kotak Mahindra Bank

NEW DELHI: Overall, Finance Minister Arun Jaitley's Budget 2016 is positive for most areas of the economy, says Shanti Ekambaram, President - Consumer Banking at Kotak Mahindra Bank.

"The budget was overall positive and reflected the tight balance that the Finance Minister had to maintain. On the one hand, he had to maintain fiscal prudence and continue fiscal consolidation by sticking to the committed fiscal deficit targets of 3.9% and 3.5% in FY'16 and FY'17 respectively and, on the other hand, provide enough resources to allocate to agriculture, rural development, healthcare and infrastructure sectors," says Shanti Ekambaram.

"Key beneficiaries have been the agricultural sector and rural India, where spends should give an uplift to the rural economy as well as provide a boost to farm growth. Also, an emphasis on the infrastructure segments of road and railways is much needed for economic growth," she adds.

"There are several incentives for Asset Reconstruction Companies, new manufacturing companies and the startups, giving a boost to "Make in India" initiative and promoting the "new entrepreneurship" ecosystem."

"PSU bank recapitalization was lower than expected, but Finance Minister promised to find a way to garner necessary resources in case further capital is required."

"Many small steps for affordable housing have been introduced, including a higher allowance for those staying in rented houses, a rebate for income below five lakhs. All these measures will help in putting more money in the hands of the small tax payers which will give them relief. In general, the thrust of the budget has been to address segments that will provide a boost to the economy, putting more money in the hands of the lower income segments," she concludes.