'Modi govt will go for next gen reforms in Budget'

Modi-led government, with its less government and more governance, supported by a massive political mandate, fiscal prudence,  sliding oil price, can get involved in next generation of reforms so that country can be catapulted to fast paced growth trajectory, said P N Vijay, Group Advisor to Religare Group.

Addressing a Pre-Budget Panel Discussion organised by Bangalore Chamber of Industry and Commerce (BCIC) under the aegis of Direct Tax Committee, Vijay who is also a member of BJP national executive member and media panelist, said the next generation of reforms and industries aspirations will be reflected in the next budget.

“Arun Jaitley’s first budget was presented within 40 days. The government has made its intend very clear through that and the next budget  will give further shape to policy initiatives,”he said.

Reflecting on the economy, he said the Modi-led government is rather blessed by growing slide in Brent-fuel rate, inflation and current account deficit. “It is really boon for any government and they can bring in more structural changes in the economy by giving primacy to industrialisation policies, FDI attraction and optimising underutilised PSU by stake sale,”he said.

 He also hoped that with the kind of popular support the populism measures would be reduced and the government would spend more on social sector.

Speaking at the function, Chief Strategist and Head Research India Mizuho Bank Thirthankar Patnaik cautioned that even after the positive sentiments there is a gap between investments to GDP ratio.

“Finance Minister  is under tremendous pressure to put the country’s finances together. He also find it extremely difficult to mobilise resources even though there is macro tailwinds in the economy like inflation under control, CAD now on comfort zone and fuel prices coming down,” he said.

Further he hoped that India would witness a growth rate of 4 to 5 per cent in 2015-16 and followed by 6 to 7 per cent in the next financial year.

Commenting very positive about the upcoming budget, BCIC President Chandramouli hoped that the government would incentivise the manufacturing sector with clear cut policy initiatives.

“We need to remove regional imbalances and should  introduce GST. To give boost for manufacturing, government should give due importance to skill development,” said Chandramouli.

BCIC Senior Vice President Anuj Sharma stressed the importance on power sector reforms and infrastructure reforms.

Partner Deloitte Haskins &Sells and Chairman Direct Tax Expert Committee of BCIC K R Sekar expressed hope that uncertainties due to tax litigations and issues in tax administration would get addressed.