Budget 2024: Benefits Seen In Exports, Taxation, Employment, Says Aditya Birla Sun Life MD
The 2.5% increase in capital gains tax may not significantly dent investor sentiment, said A Balasubramanian.
A Balasubramanian, managing director of Aditya Birla Sunlife AMC, said the Union budget unveiled on Tuesday was "clearly addressing the various needs of the country", such as employment, skill development and the rural economy.
It was also giving a boost to MSME sectors via credit reforms and expansion which according to him, facilitated improved access to finance.
Taxation
Balasubramanian spoke positively of the revised income tax slab reforms, which he said was "giving more money in the hands of the people" and focusing on boosting consumption.
He said that the 2.5% increase in capital gains tax may not significantly dent investor sentiment.
Spending
Balasubramanian said that the spending allocation for the states of Andhra Pradesh and Bihar was made with growth in mind. "It's for industrial activities to pick up such as tourism, pilgrimage activities," he said.
He stated that the intention might be to increase the economic contribution of these states to growth of the overall national economy.
He also spoke positively of the fiscal deficit maintenance as the deficit was brought down to 4.9% from 5.1%.
"Growth will continue to be the driver (of economic growth), tax collection improvement will continue to be the driver; they have ensured the overall numbers add up so that fiscal deficit numbers are maintained," he said.
Employment
Balsubramanian said that new reforms may indicate a clear cut allocation and push towards employment. He spoke about the implementation of the Employees Provident Fund Organisation, with the government incentivising EPFO contribution being something that would generate employment, and will bring organised, full credit employment to people employed in unorganised sectors.
He spoke positively of giving 1 crore youth internships in top companies over the next five years.
"They can use a bit of funding from Corporate Social Responsibility funds. It is a great move, college-going people can get access to the corporate way of functioning making them employable in the future," he said.
He called the move "big" and termed it as "innovative out-of-the-box thinking".
Export Sector
He stated that the custom duty cut on jewellery and textiles would improve exports of Indian goods.
"The basic custom duty changes brought in have indirectly increased focus on the export sector," he said.
He was positive on the budget and termed it a "growth oriented" and "action-oriented".
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