Nearly 2 years of BJP led NDA government has brought us face to face with the 3rd budget proposal from the Finance Minister Arun Jaitley. With the government giving great emphasis on programs and initiatives with a view to give manufacturing, infrastructure and startups a boost in India, he may find expectations from this budget too much to handle.
With the Sensex showing a downward trend, market realities are proving to be harsh in the present global slowdown for a more optimistic financial update. While Mr. Jaitley has attempted to assuage any fears with regards to public sector banks and their problems with Non-Performing-Assets, the verdict is yet to come in as to just how deep the trap might be. With major banks declaring bad loans and the count already crossing Rs. 20,000 Crores, estimates putting the total figure in the vicinity of Rs. 1 Lakh Crore, it may prove to be a costly affair.
Last year’s budget had emphasis on industry, while also granting ease to the taxpayer on many counts, including healthcare. While the progressive budget buoyed the hopes of investors, the good tidings haven’t lasted through the fiscal year. The government, with eyes on upcoming elections in 6 states this year, has tried to appease the general public and also at the same time kept its promises made with regards to Startup India etc.
With the markets falling approximately 600 points in reaction to budget 2016, it remains to be seen how far the people-pleasing attitude will be taken and whether the average tax payer stands satisfied with the sops offered this time around.