Taking Ease of Doing Business from India to a Digitally Healthy Bharat
The budget 2017 has laid a foundation of an enterprise and business pro India. Important factors to boost GDP are thought of the Union Budget 2017. Most important elements such as young demographic dividend, skill development, women employability, digital education, transport have been well accounted for. Also, it is reflected that the burden of taxation is more evenly split with all demographies of the society.
It is a good year for SMEs, India’s backbone given the direct and indirect reforms announced for them. 5 special tourism zones will enhance MSME development and bolster schemes for employment in textile, transport, agriculture, leather and hospitality sector. The SMEs in pharmaceuticals and logistics are bound to experience accelerated growth as Healthcare hold high on Arun Jaitley's agenda in the Budget 2017. Ease of Doing Business for SMEs will thrive with push for infra in digital economy, Aadhaar-enabled payment systems, m-wallets and digital payments.
A lower borrowing cost and increased access to credit is on the anvil as a result of the government policy on currency and Banks being well nourished. With FIPB being abolished and maximum FDI coming from the automatic route it will aid diversified business. MSMEs with annual turnover upto Rs. 50 crore will have to pay only 25% tax. Tax exemptions will be a relief to our working class and promote digital economy and affordable housing.
To increase digital payments acceptance cash purchase and payments for revenue and capital expenditure limited to INR 10000 for businesses, is a very good move.
Even for individual or personal consumption a limit of INR 3 lakh has been imposed on cash. Both will help generate more transparency and thus more revenue in times to come. I would call this move to be even better than demonetization.
For many micro sized businesses the Presumptive tax rate has been reduced from 8% to 6% for non cash receipts of upto INR 2 Crore is also very good and would lead to less cash and transparency as well as help in broad basing the tax base.
25% higher budgetary allocation for spending on infrastructure will also be a big boon to job creation and economic revival. The better infrastructure will help in doing business.
This fiscal year our government has taken reforms from India to Bharat. Allocation for rural India and Tier 2 and 3 cities have been positively crafted. 1,50,000 gram panchayats in India will have high-speed broadband service by end of 2017-18. We can foresee a poverty free, bright, employed, healthy, educated, agriculturally sustained and therefore a reverse migration trend in the Rural India.