Addressing a group of business students at Loyola Institute of Business Administration, Chennai, former Finance Minister of India, P Chidambaram gave an in-depth analysis of this year’s budget and how it would affect the economy. A few key points...
Demonetisation looms large over this year’s budget. The ills of demonetisation might even extend upto 2019.
Following demonetisation, farmers, artisans, farm labourers and micro industries were affected the most.
We assumed the budget would compensate for it. The middle class has been given tax relief, but there’s nothing for the affected lower class.
The government should have taken steps to increase demand/investment by cutting indirect taxes, so that the cost of production falls, thereby stimulating demand. However, the Finance minister has cut direct taxes instead.
Growth will flatten at 6.5%
Cannot promise more jobs.
With regard to the 25% tax for companies earning less than 50 lakh, most companies under this bracket are partnerships and 90% companies would actually benefit.
What do students think of budget 2017-18?
Chidambaram’s analysis was well articulated. He highlighted the limitations a government faces, but also gave an insight on how differently the budget could have been handled.
He explained how the government lost an opportunity to allay the effects of demonetisation in the budget. The problems that India’s economy was grappling with and the not-so impressive growth figures were spoken of Jasmine Joseph
I was initially impressed with the cut in corporate taxes to 25% for MSME industries and the income tax cut for the lowest slab. Chidambram made us realise that it will not have an impact on demand generation and he instead advised on an indirect tax cut across goods and services.
About overall growth and job creation, he made us understand that 2017 will not be that great and dented our optimismw Roger Sathiya
The highlights of this budget included highest infrastructure spending, rural spending on MNREGA, agriculture and irrigation. Chidambaram spoke about how the budget would impact us future managers. He spoke about how the government is striving to achieve the employment creation target, about demonetisation and how the move made life difficult for commmon man and that its effects would remain for long Ashwathi Rajakrishnan