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The Hon’ble Finance Minister Shri. Arun Jaitley on 10.07.2014 presented the Union Budget 2014 and mentioned that slowdown in Indian economy has to be seen in the context of slowing global economic growth. He admitted there are green shoots of recovery seen in the global economy but mandate of “sab ka saath, sab ka vikaas” to be followed in order to leave no stone unturned in creating a vibrant India.
The central theme now is “minimum government, maximum governance” with emphasis on women, children, minorities, backward classes and disabled persons. Impetus has also been given to create opportunities for youth for skill development. Health, Education, Rural, Manufacturing, Infrastructure and affordable housing have been kept on the priority list. Capital Markets initiatives like liberalization of ADR, GDR regime, introduction of uniform KYC norms, one single operating DMAT account has also been touched upon.
Overall the budget has consolidated and rationalized the things and has tried to plug in the tax loopholes. Further there has been a clear acknowledgment now that retrospective taxation in future will not be resorted. All fresh cases arising out of the retrospective amendments of 2012 in direct transfers will be scrutinized by High level committee to be constituted by the CBDT before any action is initiated in such cases. The proposal to allow resident taxpayers to obtain an Advance Ruling in respect of their income tax liability is also a welcome move.
In our view, the delivery and governance of the budget with adherence to timelines will be a critical factor. Though a lot is needed but new Government has certainly laid down a roadmap of fiscal consolidation and stable growth in times to come.