Arun Jaitley's fourth Union Budget will send a positive signal to foreign investors with its adherence to fiscal prudence, said Axis Bank's Chief Economist Saugata Bhattacharya.
While the government has increased spending, it has also maintained its fiscal stance with a 3.2 percent fiscal deficit and an even lower 1.9 percent reveneue deficit. This is a statement to investors, both in India and abroad, that "India will maintain macro-economic stability", he said. Maintaining macro-economic stability will also help in receiving a rating increase of sovereign ratings in the coming time, Bhattacharya said.
He also lauded the government's move to give a fillip to employment generation in the form of tax incentives to the micro, small and medium enterprises (MSME) sector. The sector, which is one of the major job creators in the economy, had been badly affected by demonetisation since it relies on cash to pay wages etc.
Also Read: Finance Minister Cuts Income Tax Rate For Small Firms To 25 Percent
Also Read: Affordable Housing Gets Infrastructure Status, Higher Allocation At Rs 23,000 Crore
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
