The Union Budget 2017-18 showcases the government’s strong focus to change the status quo of the country, from a ‘developing’ to ‘developed’ economy. A few aspects outlined in the budget clearly emphasises this stance, namely through the allocations stipulated for the housing and SME sector and initiatives to boost affordable healthcare for weaker sections.
From a larger perspective, we are bearing witness to a revolution of sorts; the government has been vocal about eliminating the inherent bureaucracy in the system, with a view to emerge as a ‘new-age globalized economy’. Several improvement measures would therefore need to take precedence, i.e. addressing issues around basic infrastructure like sanitation, shelter and education; building a robust and well-regulated monetary system (i.e. less-cash mechanism); providing a growth impetus to SMEs as opposed to only large manufacturing entities.
From an enterprise standpoint, while the minor tweaking of direct and indirect taxes may not be seen as an enviable change in the medium to long term, the overall structural shift that is underway is certainly a step in the right direction.
Source: Indiainfoline
