JULY 11, 2014

By O P Tibrewala, Past President Fapcci

THE budget presented today by the finance minister very well covers the promises made by Mr Narendra Modi during his election campaign and also in BJP party election manifesto. The budget will definitely give boost to the growth of industry, particularly to the SME's. It will also boost tourism, create jobs and create many other multifold advantages. The reduction in personal income tax will definitely help the salaried class to face the inflation. It also gives hope that, once the inflation is controlled there may be substantial reduction in interest rates as was done by the earlier NDA government thereby boosting the industrial growth and employment creation. The provision of Rs 28,635 crore amount for Sarva Siksha Abhiyan is no doubt a welcome step for the education of poor children but it is wasteful until the quality of education in the government schools are controlled and made result oriented. Presently the quality of education in government schools is poor with 0 to 10 percent result thereby wasting the career of poor children. Hence, Sarva Siksha Abhiyan must be linked with quality education.

This budget is no doubt higher education oriented as IITs, IIMs, agriculture and horticulture universities are being established. The budget has taken care of girl child, youth by announcing several steps to reduce the cost of electronics and technology and also of senior citizens by announcing all the money accumulated with the government as unclaimed amount of Public Provident Fund shall be used for the benefit of senior citizens.

The benefit given to the bank for extending loan for the infrastructure development is unique and it will help in the growth of infrastructure, immensely. To reduce the burden on the big cities and to create more employment closer to their homes, the development of 100 new cities shows the determination to fulfill the commitment. The incentive for the construction industry and making finance available to it will definitely help to create affordable housing, faster and doing it in big volume.

In a nutshell the budget is a budget of hope and one of the best in the recent memory. Compliments to the finance minister and the prime minister.