A Consumption focused Budget targeted at the Bottom of the Pyramid
Mr. Sunil Duggal, Chief Executive Officer, Dabur India Ltd.
Finance Minister Mr. Arun Jaitley’s Union Budget for 2017-18 is a consumption focused statement that seeks to drive consumerism, particularly at the Bottom of the Pyramid. It may lack any big bang announcements, but it certainly contains measures that are seen as the right steps in the right direction, and are aimed at improving the quality of life in Rural India.
The only disappointment, I would say, is the absence of any cut in Corporate Tax Rate for larger firms, which most people had expected.
The Union Budget 2017-18 was expected to be focused at boosting consumption, and Mr. Jaitley has delivered what was expected. Be it the greater focus on farmers and rural development, higher investments in Infrastructure and livelihood, improving connectivity with the hinterland and 100% rural electrification, this Budget has taken some positive steps that would not just boost overall consumer confidence, but also go a long way in generating employment.
The focus, this year, has clearly been the farmers and people in the hinterland. I am quite happy with the government continuing the rural focus and enhancing allocation to MNREGA to Rs 48,000 Crore. These, coupled with the skill development initiative, would not just strengthen the hands of the rural poor, but also help put more disposable income in the pockets of the rural consumer and ensure continued rural demand for branded consumer goods.
The Income Tax rate cut to 5% for individuals with income between Rs 2.5 lakh to Rs 5 lakh is a big positive that would put more disposable income in the pockets of the common man