Opens new growth trajectory with social sector support for the weak
28 Feb 2015
By Chandresh Kumar Nigam, managing director CEO, Axis Mutual Fund
The 2015-16 budget presented today, is very progressive budget, which has measures on one hand to propel India to a new trajectory of growth, and on the other, seeks to provide support to the weaker sections of society.
It also supports growth of the capital markets through its various measures like gold monetization, change in permanent establishment regulations and providing clarity on tax issues related to AIFs (Alternate investment fund) and REITs.
The finance minister has also indicated significant regulatory changes, to address some of the long standing ills of the economy, like corruption and black money.
Reduction in corporate tax from 30 per cent to 25 per cent over the next four years gives a strong message about the trend in taxation in India in the future and help to inspire confidence.
The significant increase in outlays across the spectrum does however, create pressure on the fisc, which is budgeted to be higher than expectations and may lead to a slower pace of interest rate reduction by the RBI.
