Comments of Mr. Shyam Srinivasan, Managing Director & CEO, Federal Bank on Union Budget 2015-16

The Finance Minister presented budget with a multi-year view. He has laid the roadmap of what can be expected over the next 4 years and done a fine balancing act between the present fiscal challenges while dealing with high expectations of the government.

A quick view of the budget suggests that the focus of the Government has been in terms of removing bottlenecks for improving infrastructure and enabling ease of doing business. Increase in road/ railway outlays, and increase in infrastructure spending by Rs 70000 Crore over last year would give the much needed fillip to the infrastructure sector. Implementation of GST and Introduction of Bankruptcy Act would improve ease of doing business and help bring in more private investments. 

The government has been focused on improving the living conditions and ensuring that the vast majority find succour in their old age. Introduction of Social security measures like Universal Social Security and Atal Pension Yojana are steps in that direction. Higher tax relief on account of investments in NPS would help boost savings and investment in the infrastructure space and at the same time, ensure that people earn sufficient pension income post their earnings age.

Steps to promote cashless transactions and for prevention of black money in the system hold promise. It would be important for us to see how the policy measures announced in the budget are followed through and implemented. While the intent has been good, with long range goals in sight, the execution of the plans over the next couple of years would hold the key to sustainable and long term high growth rates, that the country desires.