New Delhi [India], July 24 : I would describe this budget as bold and radical, focusing on three key areas said Suman K Bery, Vice Chairman NITI Aayog in an exclusive interview with ANI.
Bery stated that the budget addresses the longstanding issue of better livelihoods. Secondly, it redefines the relationship with the private sector. Third, it is committed to inclusive growth. It is also prudent to continue the fiscal consolidation roadmap, which is crucial for the medium term.
Bery added that this budget aims to tackle high-quality employment, providing new incentives and opportunities for first-time job market entrants. Contrary to popular belief, our surveys indicate that jobs are being created but often do not meet the expectations of graduates, who may end up in positions like security guards. For instance, companies like L&T have reported 45,000 unfilled engineering positions. This budget attempts to bridge the gap between available talent and job requirements, thus improving livelihoods.
He also highlighted the promise of future reforms in this budget. In six months, the Prime Minister has committed to a complete review of the direct tax code, with significant improvements in tax administration already evident. Simplified taxation for MSMEs would be a major boost, and we can expect a new direct tax proposal in the next budget.
Additionally, the budget addresses agricultural research, emphasizing the need to raise productivity. Notably, it suggests allowing the private sector to bid for government funds in this area, marking a significant shift. There are also plans to involve the private sector in nuclear energy, previously restricted to the public sector. Furthermore, the budget includes initiatives to encourage women's employment through skilling, housing, and dormitories. This reflects a shift in the government's role to policy framing and facilitation rather than direct job provision.
Bery praised the abolition of the angel tax, which will attract more domestic and overseas investment into the startup ecosystem. The angel tax, introduced by the UPA government 12 years ago, assumed it could be used for money laundering due to the difficulty in valuing startups accurately. Since then, India has developed the world's third-largest startup ecosystem, with some startups relocating to places like Dubai and Singapore to avoid the tax. By removing it, the government expects startups based in India to access funding more easily.
Regarding the fiscal deficit target set by Finance Minister Nirmala Sitharaman at 4.9 per cent of GDP, Bery believes it is achievable. "This is important for two reasons. First, if the government borrows less, interest rates will decrease, benefiting private sector investment. Second, credibility in fiscal promises should improve our credit rating, which would also benefit the private sector," said the Vice Chairman of Niti Aayog.
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