Post Budget Reaction By Mr. Lalit Bhagia, Founder and CEO, MyRefers
I expected further information about last year’s announcement on Rs. 10,000 crore funds earmarked for startups. More than half of India’s population is below 25 years of age and to generate employability remains the primary focus. While it is encouraging to see that Government has logically aligned Skills India Mission to the Make in India theme and programmes that come under its umbrella, there is nothing more specific about how the budget may go in providing trainings and create employability? Also, while the budget clearly empowers the states to enable them to meet local needs and finance, to be able to implement schemes and programmes accordingly, the sharing pattern of both fiscal and operational responsibility will need a lot of coordination between Ministries and respective departments to be able to use resources assigned by the Centre well. Also, taxation related aspects like investor’s role with Indian startups are not spelt out. This is important in the context of the ease of doing business in India.The proposal floated to reduce corporate tax from 30% to 25% over the next four years, starting from next financial year is a welcome move. There must also be a provision to create tax slabs for startups as per revenues they make, at least in the first few years of formation there must be a reasonable amount of tax. The goodness of a budget will only be realized through its effective implementation and the success or part of it achieved before the next budget.
