Special focus on digital revolution is a need of the hour

By Raghavendran Swaminathan

"The Union Budget 2020 is a balanced approach given the various issues across the sectors.

The three pillars Aspirational India, Economic development and Caring development will provide an inclusive growth in coming years.

Special focus on digital revolution is a need of the hour. Increase of deposit Insurance coverage from `1 lakh to `5 Lakh per depositor will provide stability and safety to individuals.

Concessional corporate tax rate of 15 per cent to new domestic companies extended to power sector will provide much needed relief to the sector. The abolition of DDT and adoption of classical system of dividend taxation will provide ease of business. The adoption of new tax regime shall increase the disposable income of individuals, might lead to consumption pick up.

In line with the market expectations, the fiscal deficit target increased to 3.8% due to the structural reforms. However, adherence of 3.5% fiscal deficit target for FY 2020-21 will provide relief to the interest rates. Listing of LIC shall provide big disinvestment revenues to Government.

‘Vivad se Vishwas' scheme which allows taxpayers to pay only the amount of the disputed taxes till some point is a big positive.

Overall the nominal GDP growth projected for FY 20-21 is ~ 10%, considering an average inflation of ~ 4.00%-4.50%, the real growth will be in the range of 5.50%-6.00%, which is a visible improvement of 5.00% GDP growth from FY 19-20."

(The writer is the Chief Financial Officer, Wipro Enterprises)