The work on the National Waterways is also being expedited Rs 800 crore has been provided for these initiatives ” , the Finance Minister said.
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“I think what is most important is our desire to resolve all pending disputes”.
Overall, the budget can be seen as a bit conservative but sensible-those who were hoping that the FM will be more daring and take some risks to get a stronger “feel good” factor for corporate India will probably be disappointed as will be individual tax payers. United Kingdom oil explorer Cairn Energy is facing a tax demand of Rs 10,247 crore on a 2006 business reorganisation it carried out in its India unit before getting it listed.
“Even with what has been stipulated in the budget, there are ways.you can build houses of that size”, Jaitley said. It invoked India-UK BIPA to take the government to arbitration over the issue.
Jaitley also said that while pushing economic reforms and increasing public spending, the government would stick to the fiscal consolidation path. Similar was the case with the automobile industry that had mixed reactions to the budget.
However, Modi’s attempts to streamline taxes and overhaul antiquated labor and land acquisition laws to attract more investment mostly have been thwarted by opposition parties. He said that it could be achieved inspite of inheriting an economy of low growth, high inflation and zero investor confidence in Government ‘s capability to govern.
Chief Economic Advisor Arvind Subramanian, in the Economic Survey, projected a growth rate of 7-7.75 per cent for the next financial year. We are planning to develop new greenfield ports both in the eastern and western coasts of the country. The finance minister also tried to give a extra push to growth through increased investment in the infra sector, pegged at Rs 2,21,246 crores, liberalising foreign direct investment and trying to bury the ghost of retrospective taxation by offering not to charge penalty and interest on Vodafone and Cairn if they withdrew from global arbitration proceedings against the government.
“The RBI last evening (Tuesday) took a very positive move which helps further in recapitalisation of banks”, he told representatives of industry associations Federation of Indian Chambers of Commerce and Industry, Confederation of Indian Industry and Associated Chambers of Commerce at a post-Budget 2016-17 meeting in New Delhi.
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The shares of public sector banks surged on Wednesday after the Reserve Bank of India eased Tier I capital regulations at a time when banks are grappling with bad loans and increased need for provisions, which in turn are weighing on capital levels.
