Budget 2016 lacks on simplicity quotient but strengthens the financial system

There are all the right key words, in the Finance Minister’s 9 Point agenda in this budget. Focusing on governance and Ease of doing Business, education and skills, infrastructure, financial Sector and tax reforms reflect dedication towards a pro Technology, Infra and Trade oriented year ahead. The budget intends to build robustly Agriculture and Farmers Welfare, Social Sector and Rural employment to further bridge the gap between Bharat and India.

Lowering of Corporate IT rate for companies (for new manufacturing companies and SMBs) not exceeding Rs. 5 crore turnover to 25% plus surcharge, tax holiday for startups for three of five years of setting up the company, the massive investment in the road infrastructure would provide support and boost to the MSMEs, startups and our overall ecommerce industry.

The Budget further strengthens the Financial System starting with the recapitalization of Banks. Since, Capital is the biggest woe for any entrepreneur, disbursement of MUDRA funds to 1,80,000 crore would add the apt backing.

What makes me particularly happy is the impetus being given to Skill Development. It assures the creation of a developed ecosystem where the Young Demographic Dividend of India has ample avenues of enterprise and means of excellence.

The Budget however lacks on simplicity quotient by initiating varied cesses this year unlike last year. Cess and surcharge on clean energy, for Infra and Agri, and even in Corporate tax shall prove to be raising complexities and hindrance overall.

(This article has been authored by Dinesh Agarwal, Founder and CEO, IndiaMART)

Image credit: Indiatimes