Quote from Mr.Ganesh.S, CEO, Dun & Bradstreet Technologies and Data services Pvt Ltd on Pre- Budget expectations:
The new government of Mr. Modi has a mandate to revive the economy and to increase employment opportunities. The first budget hence needs to create a vision and a clear roadmap for foreign investment, taxation reforms, infrastructure investment, manufacturing revival and fiscal consolidation. If this is done the mandate of the people will be respected.
In terms of specifics, I would like the new Finance Minister to give a major thrust to Micro, Small and Medium Enterprises (MSME). This sector is the key driver of employment and entrepreneurship and needs to be revived especially in Manufacturing. This sector is currently Moribund due to its lack of competitiveness with Imports especially from China. The FM needs to rationalize the regulatory and Taxation framework of this sector especially in terms of lower administration cost. The sector also will need the cost of inputs especially Power and Transport to be lower, for which a framework needs to be created. There also must be a strong thrust to increase lending and reduce interest rates to the sector in conjunction with the RBI.
The other major issues that need to come out is the clarity of implementation in GST and removing all anomalies in the roadmap to implement the same. I would also like clarity on transfer pricing which has become a sore point in FDI and rationalization of the Tax code especially MAT, DDT etc. There also needs to be a better clarity of devolution of financial powers to the states especially for social sector programs.
On the revenue side I would like to see non-traditional revenue streams especially disinvestments, auctions of natural resources, expansion of tax net etc. which shows a mindset change from the past.
Better opportunities for education and skill development should be another key focus area to enable more people seek better employment opportunities. Apart from increasing the budget allocation for education, we should also look at attracting foreign investments & global universities to transform our education sector.
All of these will boost the overall sentiment and create a climate of business optimism which I hope is the Key budget theme.