The union budget of India 2017-2018, presented today by India's Finance Minister Arun Jaitley is a forward-looking budget designed to propel the economy forward, UAE-based finance experts said.

Macro-economically it is a good budget, wherein the fiscal prudence continues. There are certain trendsetting initiatives this time like the consolidation of Union and Railway budgets, bringing railways into the centrestage, said Dr B R Shetty, chairman of UAE Exchange and executive vice chairman and CEO of NMC.

"Common man will get great relief with the reduction of tax to 5 per cent for income between INR2.5 lakh and INR5 lakh. Healthcare gets an impetus with the establishment of two more AIIMS, which means affordable quality care to more people," Shetty said.

Rural development has got into focus with infrastructure and cleanliness taking the lead. Farmers will double the income in five years, intensifying focus on agriculture, the spine of the economy, he said.

"National agricultural market on digital space will get the best price for the farmers. The homeless to get houses by 2022 is a great move. Life and skill development for youth, women, children and minorities are defined well. Digital economy aims to bring transparency in political funding, income structures and financial inclusion, enhancing the lifestyle of the poor," he said.

"It does sound progressive in approach, just that the aspect of corporate tax could have been a bit bolder. But the intention of the government is clear and positive, which is good for the economy as a whole,” said Dr Shetty.

The taxation reforms, market liberalisation policies, FDI automation reforms,  proposed increased spending on infrastructure, healthcare for the underprivileged, education and agriculture – all mainstays of the Indian economy, are pro-growth steps, taken in the right direction, said Sudhesh Giriyan, COO of Xpress Money.

"Importantly, the budget liberalises the stock market by listing shares of Railway public sector enterprises (PSEs), and makes it easier to attract foreign direct investment. For NRIs (non-resident Indians) in the UAE and elsewhere in the world, the budget presents opportunities to get involved in economic growth back home. The strong emphasis laid on technology in almost all the development areas reaffirms that technology has been at the forefront of India’s recent economic growth and digital transformation,” said Giriyan.
 
Y Sudhir Kumar Shetty, president, UAE Exchange, said: “It can be termed as change-making budget. It combined Union and Railway budgets which set a trend and reflected government’s intention to streamline the budget. Its vision is to transform, energise and clean India, shaping a digital economy and building tech India. Agriculture, infrastructure, youth, education, women, children, minorities, digital etc., have been covered well in the proposal.

"The digital focus increases transparency in terms of income or political funding, strengthens the financial system, generates more revenue and adds impetus to financial inclusion drive, helping the poor. Common man’s tax woes seem to have found a breather in this proposal with a tax cut to 5 per cent for an income ranging between INR2.5 lakh and INR5 lakh. That means more money in the hands of the salaried. Meanwhile GST means revenue to go up further due to indirect tax. The reduction in the tax is a good idea. With the positive and progressive approach, more tax concessions can be expected in the future. Overall it’s a sound proposal with a very positive intention of the government to take a strong step towards balance and improving lifestyle,” he said.  -TradeArabia News Service