Budget 2014: A Balm for Businesses Hurt By Tax!

BANGALORE: A true test for Financial Minister, Arun Jaitley, as he presents the budget on the 10^th of July, to see if his ways of dealing with a run down economy will see the revival of possible economic power house, India or a copy and sly fine tuning of the existing budget.

Businesses will be hoping to see a platform for growth with the new budget. As hinted by many economists, there can be surprises for business growth. This budget can very well be a healing balm or a weapon to cut deeper into the economy.

The biggest area that businesses are hoping to benefit from is the tax reforms in various sectors. The reforms expected on the excise duty for import and export, will ease business trades, giving growth prospectus for local business houses. The Financial Minister expressed that, subjects such as ‘tax terrorism’ and ‘policy paralyses’ are the word in the economic world and these issues will be strongly dealt with. Economists from various companies have expressed the need for regulating the amnesty scheme given to authorities to deal with fraudsters.

Investors have very high hope for a pro business budget where there will be a platform for restarting a stalled investment cycle, reviving the government’s fiscal health, and also improving the supply side of the economy. The biggest challenge will be to show a lower fiscal deficit number.

The plan to boost flow of FDI and FII and to bring in private players into some mainstream public sectors will give businesses more space to expand and invest.

When BJP had formed the government, it promised to remove unnecessary and over rated tax and promised to return excess money collected by the authorities. These promises will be monitored to see that it is fulfilled.

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