The Positive Impact Of Union Budget 2017


 Union Budget 2017, DTA consulting, Deepak Talwar

The much-awaited Union Budget for 2017-18 turned out to be less exciting and more pragmatic. As expected the budget deferred any major changes on indirect taxes to a later date, when GST will be introduced,instead making only cosmetic changes to direct tax rates.

The overall focus continued to be on the ease of doing business and an increase in the GDP growth rate.

The two headline grabbing steps announced in the budget are: (a) Reform of electoral funding of political parties and (b)Disbanding of FIPB, the body clearing foreign investment proposals, with the latter impacting potential foreign investors. 

The budget was placed in the back drop of sudden cancellation of two high value currency notes in November last year and the resultant adverse impact on GDP growth rate in the short term.  However, the remonetisation of currency that were withdrawn from circulation has now nearly complete. The adverse effect, as per the budget, will not affect the economy in the financial year 2017-18.

Policy analyst Deepak Talwar from DTA Consulting stated that the “Overall the budget had a positive impact on the capital markets and seemed to lend credence to the Government’s fiscal objectives, as well as its desire to keep GDP growth rate highest among the large global economies.”

In addition, the agreement reached on the contentious issues over introduction of GST will help the economy during the year. 

Suggested reads: Reasons To Cheer the New Railway Budget

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Keeps a close eye in whats going on realty sector.
  • Neharika Jain

    It’s a shame how we don’t give the much required attention to every year’s budget. People make things better and not the government alone. Unless we show some interest and support the reforms made by the people in power, we cannot foresee a bright future for our country.

  • minu Rai

    Impressed by the fact that Rs 2,000 is the limit that has been implemented on the donations that political parties receive from a single source. This will give way to free and fair elections to take place in the system. Arun Jaitley has responsibly brought forward a great number of beneficial reforms in the welfare of his people