Growth budget free of sops

The air of suspense has lifted. The finance minister has answered the all important question — will it be a populist budget to meet the sentiments of the upcoming polls or will it be a growth budget that sets the country on an even faster growth track? The answer, as doled out by Mr Jaswant Singh, seems to lie on the growth side.
Belying the pressures from the ruling combine, the FM has decided against direct tax breaks. The decision would have meant a few extra rupees in Housewives’ pockets, the Prima Donna of the FM’s last speech.
However, the decision to grant another three-year reprieve on long-term capital gains will be a breather to many investors. Similarly, the decision to merge 50% of the DA with the basic salary for government employees would increase the disposable income of government employees.
Increased expenditure on defence to the tune of Rs 25,000 crore, a 1% increase since last year takes into cognisance modernisation needs of our security forces. However, this will be meaningful only if the defence agencies are able to utilise the funds. Given the under-utilisation of funds by the various defence agencies in the past, this is a major consideration with defence expenditures.
The main beneficiaries of the budget seem to be the sunshine BPO and the service industries, middle class and the farm sector. With the abolition of the BPO tax the government has taken the right move to provide the needed push to the sector, which is contributing a huge chunk to India’s growth.

Also the move to initiate IT in a big way in all government processes has taken ground with round the clock e-filing of excise returns. It is the best way to ensure smoother operation as well as good governance. The more the government decides to automate the proceedings the simpler the life shall become for the ordinary businessman.
A renewed focus on medical education with the announcement of further six AIIMS level institutions in the country will go a long way in furthering the cause of healthcare in the country. However the initiatives of the government regarding primary education still appear unclear.