A prudent budget

Except for introduction of dividend tax for those receiving it in excess of Rs. 10 lakh, I could hardly find anything that can be termed negative for the market in the Union Budget 2016. The measure of dividend tax can best be described as ‘penny wise pound foolish’, looking at the current scenario of the market and the disproportionate damage it may cause to the sentiment compared to the minuscule revenue it will end up generating. In fact, the much-needed focus on agriculture, rural development and infrastructure will give the desired push to demand stimulation in rural India, that has become a matter of concern post two consecutive monsoon failures and the world economy going through a massive slowdown. Also, it will be a step towards ensuring food security and will prepare the necessary base for the ‘Make in India’ initiative.



About gfilesmagazine

gfiles is the country's first independent magazine written, designed and produced for India's civil services—the vast and formidable network of bureaucracies and public sector organisations that provides continuity and stability to this nation's governance.
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