Budget reflects intent for inclusive growth

Last year, the Union Budget mainly focussed on taxation, Swachch Bharat, education, welfare schemes to name a few. This year, the budgetary outlay in power sector has increased over the previous Budget. While the fund allocation in DDGJY & IPDS has increased from Rs 4,500 crore to Rs 8,500 crore, the focus is on MSME, entrepreneurs & startups to help electrical equipment manufacturers.

Moreover to give a boost to nuclear power, the government has allocated Rs 3,000 crore for nuclear power.

IEEMA welcomes the Union Budget 2016-17 announced by the Union finance minister as a balanced Budget. The Budget is in continuation of the government’s commitment to provide 24x7 electricity For all, with increased allocation in the power sector.

 The focus on augmenting nuclear power with an allocation of Rs 3,000 crore is a welcome step and reflects the government's intent to achieve the right fuel balance. While the finance minister has not gone overboard to make some populist announcements, yet he did his best to strike a balance between short-term growth and sustainable economic gains and has done a great balancing job. This will give a big boost to the infrastructure and rural sector. With a budgetary outlay of Rs 79,884 crore to the power sector in the new Budget, there is an increase over previous year. The electrical industry is hopeful that the government will take all steps to ensure that there is full utilisation of funds allocated. Substantial emphasis is given to Stand up & Start Up India to make it a reality. A large section of the society, with lack of opportunity, shall benefit out of this. 

The industry welcomed the government’s commitment to achieve 100 per cent rural electrification by May 1, 2018. A fund allocation of Rs 8,500 crore, out of which Rs 3,000 crore and Rs 5,500 crore was allocated to Deendayal Upadhyaya Gram Jyoti Yojana and Integrated Power Development Scheme respectively. The proposal to increase the Presumptive Taxation Scheme for MSMEs from Rs 1 crore to Rs 2 crore will bring big relief to a large number of assesses in the MSME category.

The Budget 2016-17 addresses skill development and new job creation, with 1,500 Multi Skill Training Institutes proposed to be set up under Pradhan Mantri Kaushal Vikas Yojana, across the country with an amount of Rs 1,700 crore. Moreover, the proposal to set up a National Board for Skill Development Certification in partnership with the industry and academia is encouraging, which will train one crore youth over the next three years, further benefitting the manufacturing sector.

This will also result in uniformity of growth and development across the country.IEEMA echoes the The Make In India and Skill India campaigns of the government. This conforms to IEEMA's objectives to promote domestic production and focus on exports through its 'Made In India' proposition.

The industry eagerly awaited for announcement of a roadmap for implementation of the Goods & Services Tax (GST) regime, which will positively impact complicated tax issues and boost productivity and businessdevelopment. However, there was no mention about the same.
(The author is the Director General of IEEMA)

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