The new government’s first full-year Budget Proposal is exciting with ‘Swachh Bharat Abhiyan’ and ‘Make in India’ as their key focus. Some of good initiatives include abolition of the wealth tax and increase of domestic transfer price from 5 to 20 crore. Additionally, the government’s proposal to decrease corporate tax from 30% to 25% and removing the various exemptions which contribute to multiple tax disputes are some good steps in the direction of making tax administration simple. Increase in service tax is a step towards GST and serves as an indicator of the possible rate of GST which could be a 100 basis points. Creating extensive awareness on social security schemes and making citizens to participate actively is a great initiative. Setting up exchange of trade receivables for MSMEs is remarkable. Monetisation of dormant Gold is another good initiative.
Having said that, I was looking forward to hearing about the schemes similar to previous year’s Digital India. On a scale of 10, I rate this year’s budget a solid 7.