The finance minister has highlighted the importance of the manufacturing sector, which is the key to reviving the economy. The performance of the manufacturing sector over the last one year has been consistently poor and is in need of intervention. Given the stressed assets in the banking sector, the finance minister’s allocation of Rs 11,200 crore for strengthening the capital base of public sector banks is welcome.
The budget is absolutely up to expectations.
This budget is a vote on account. So we were not expecting creativity. But we are very happy to see the numbers the FM has delivered. The common man will not be adversely affected by the announcements made during the budget. The FM has stuck to what he had promised with fiscal deficit being kept at 4.6 per cent of
GDP in fiscal 2013-14, lower than the budget estimate of 4.8 per cent.
The future direction being given with regard to central government finances is also good.
The excise duty cut on automobiles and capital goods will provide a much-needed relief to these sectors. However, the industry would expect a much larger package from the new government to revive the manufacturing sector when the regular budget is presented. There is an imperative need to cap the non-plan expenditure of the government. The non-plan expenditure of over Rs 12 lakh crore gives an impression of a fat government which needs to reduce its size so that more resources are left for development.