'Budget 2020: Good for nation, individuals'

By M Murali,

I would say, overall, this is a good budget for the nation and for individuals. The budget is well articulated under three major themes – Aspirational India, Economic Development for all and Caring for society - encompassing all the sectors.

The sixteen-point program announced for agriculture and irrigation for augmenting the farmer’s income -with a huge allocation of Rs 2.83 lac crores and also fixing the agricultural credit target at Rs. 15 lac crores - well depict the importance and focus the Government accord for rural development, and their concern for the farmers. Setting up of as many warehouses and providing ‘Viability gap funding’ to set up warehouses will greatly benefit the farmers. Extending the scope of refinance scheme by NABARD is a much needed move.

The holistic vision on national health care, allocating about Rs. 69000 crs, and the importance given for education and skill development by making an outlay of Rs. 99300 crs is also laudable.

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Rs 103 crs National Infra pipeline launching - will go a long way for infrastructure development of the country.

Appreciating the fact that Entrepreneurship has always been the strength of India, the assurance given by the Government that wealth creators will be respected is a good encouragement to honest entrepreneurs. Setting up of Investment clearance body at center and state levels is a good initiative.

Support for districts to emerge as export hubs will go a long way for SMEs to flourish. Enhancing the turnover threshold limit to Rs 5crs for MSMEs in the matter of submitting themselves for audit requirements will give a great relief and encouragement to MSMEs.

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Tax exemptions announced for 5 years on ESOPS for startups- is a great stimulus.

Budget proposes to abolish the dividend distribution tax (DDT). This will bring in relief to the investors. The dividend will now be taxed in the hands of the investor. Investments will tend to further go up.

Importance accorded for digital connectivity for essential services is an excellent move.

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Tax cuts for Income tax payers will greatly benefit middle income group - improving the level of money left at their hands for consumption, and this will positively impact their investment decisions, particularly on housing.

The Government’s moves to back its mission ‘Housing for all’ and affordable housing are really welcoming. Extension of tax benefit tenability date by another one year for home buyers and tax holiday for developers engaged in development of affordable housing by another one year will definitely boost the mid income and affordable housing market.

In short, this is more a common man’s budget, with a fiscal deficit at an estimated level of 3.8%. With receipts for 2020-21 pegged at Rs 22.46 lakh crore and expenditure at Rs 30.42 lakh crore, the Nominal GDP growth for FY21 is estimated at 10%.

(The writer is Chairman and Managing Director, Shriram Properties Ltd. )