The Finance Minister has delivered a well-defined and prudent Budget with specific focus on infrastructure, manufacturing and rural schemes. The way I look at this Budget, it is about defining the priorities of the government. There is no path-breaking clear announcement, though an indication of what?s going to happen over the next six-nine months has been mapped out.
Taking a cue from the previous government, the rural sector continues to be an area of focus. If anyone had any doubt on whether this government will move towards industry and urban development alone, then it is not so. What has changed slightly is more focus on investment for future rather than just worrying about today.
The Budget also focuses on manufacturing, though I would have liked to see a little bit more on manufacturing in terms of specifics. For manufacturing, GST is very important. Though a positive intent was shown, it would have been better if they gave a blueprint. This government did well by sticking to the 4.1% fiscal deficit announced by the previous government instead of passing on the blame and calling the target unrealistic.
The biggest impact will be seen in the infrastructure sector as it will drive growth for many sectors, even automotive. They have put some of their best people in the ministry for infrastructure. That will be the biggest thrust.
The government will want to erase the view ? that anyone might have ? that it is not an inclusive government. Thus, the focus on rural economy will be very high. I hope that in doing so manufacturing does not suffer. In the longer run manufacturing has to revive. The auto sector will benefit indirectly from the investments in infrastructure, opening up of mining and agriculture sectors.
