Budget 2019: It's good govt focusing on job creation

By Abhinav Angirish

Thoughts on the new budget announcement

The budget 2019 placed emphasis on infrastructure and providing a boost to connectivity. It is a welcome to step as it strives to involve private sector participation in a big way. Government has made all efforts to make India as a preferred FDI destination by proposing to relax FDI norms for Aviation, Media, Single brand retail and Insurance. To sum it in few words, Budget 2019 is a budget for everyone. Housing has received a big boost with an additional Rs. 1.5 lakh deduction in income tax on home loans under affordable housing.

Expectations vs budget announcement

Well, the government has done a great job, it has focused on job creation by boosting infrastructure, and the effort to foster development outside the city to reduce urban congestion is a welcome step. The bond market, which was worried about fiscal math, can heave a sigh of relief as fiscal deficit is firmly in control. The expectation that the government will increase capital expenditure has been fulfilled to an extent. The finance minister has taken a pragmatic approach and successfully walked the tight rope.

Comment on finance sector announcement

The budget is great news for CPSE ETF investors. The tax saving benefit to ETF is similar to the tax benefit available in Equity Linked Savings Scheme (ELSS).

Changes that could have been made in the budget 2019

Well, steps could be taken to boost consumption by reducing duties on four-wheelers and 2 wheeler automobiles.

The particular sector that could have been focused on for development

The government has focused on development in a big way. Government has tried to boost housing by allowing additional tax deduction on interest payment, the PPP model for development is a huge step as it will enable private players to participate in the infrastructure sector in a big way, an increase in investments will ensure increased job creation.

Overall view on the development of the country

The budget is a step towards making India a USD 5 trillion economy. The country is expected to witness sea-change in the execution of projects. The budget is expected to set the wheels of development in motion.

Abhinav Angirish is the founder of Investonline.in (Financial Advisor)