Finance Budget 2016- Reactions

Amritsar, Feb 29 (Punjab Post Bureau)- With the economy chugging along at 7-7.5% GDP growth, the Finance Minister has chosen a continuity based Approach to the fiscal, with accents on reform and rationalization. The promise to double farm incomes by 2022 and the commitment to boost the rural economy is singularly Commendable. Also, the heightened spending on infrastructure and an effort to boost the housing sector are Indeed highlights. The budget, however, is a statement of intent of the government and gives direction to fund Flows, and the real challenge is implementation and outcomes.

In our expectations, one had talked about manufacturing, real estate, farm economies as areas that require an impetus in order to generate employment and the resounding expectations of GDP growth that befits the Modi mandate. Also, specific mention was made to ease of setting up & doing business, lowering interest rates on housing, education and industrial finance for the MSME sector. We had also mentioned budgetary support to make the farm-to-buyer journey, sans middlemen, for organic farm produce to encourage the production of non toxic food, as well as wean the farmer from the MSP habit of crop rotation to more remunerative farming. Another, anticipation was to be mindful of the border areas of Punjab which are in crying need for succour having braved the onslaught of war, militancy and drug menace.

Budgetary provisions 2016 have focused on some of these areas, but it is imperative that the fiscal flows ensure that Execution is optimal. The taste of the pudding will be in the eating, and evidence of good intent should be visible to the people.