From enhancing the ease of doing business, to creating a conducive environment for new-age companies, with a focus on rural growth and infrastructure creation the new Union Budget for 2019-20 ticks several boxes.
Here is a quick recap of the highlights and an analysis from the desk of the Group Chief Economist -
Finance Minister Nirmala Sitharaman, presented a ‘mega investment-oriented’ budget with a blueprint to transform India's economy by 2025. This will be achieved by setting up a Credit Guarantee Enhancement Corporation, enhancing the source of capital or infrastructure financing and easing the norms for Foreign Direct Investment (FDI).
Anand Mahindra, Chairman, Mahindra Group, said, “Instead of lowering Goods and Services Tax (GST) on all cars, Nirmala Sitaraman aligned with the vision for mobility & incentivized only Evs. In fact, the budget is an accumulation of seemingly unspectacular moves that will nudge the economy onto a trajectory toward USD 5 trillion & an improved ‘ease of living.”
V. S. Parthasarathy, Mahindra Group CFO, said, “Budget 2019 has re-imagined solutions to old chronic problems. This was a ‘Governance’ focused Budget pivoting around technology, digital and enhancing the ease of doing business in India. It can prove to be a powerful catalyst for economic prosperity if the implementation is flawless and executed in near ‘crisis mode’.
Enhancing the ease of direct and indirect taxation the government has increased the threshold turnover for a lower rate of corporate tax. Currently, the lower tax rate of 25% is only applicable to companies having an annual turnover of up to Rs 250 crore. This has now been expanded to include all companies with an annual turnover of up to Rs 400 crore.