Pragmatic and positive

Dr. Arun Singh, Lead Economist at Dun & Bradstreet India

''The Union Budget for FY18 was pragmatic and positive and treaded on the expected lines.

Based on the three pillars of ''Transform, Energise and Clean India'', the Budget focused largely on rural and underprivileged, infrastructure, transparency and prudent fiscal management to accelerate economic growth.

While the target of achieving fiscal deficit of 3.2 per cent seems to be optimistic amidst the current slowdown and increasing downside risk to the economy, it might be achieved on the back of rationalization of taxes, implementation of GST and additional measures to enhance the tax base.

The much-needed emphasis on the languishing capital investment has received a boost through the more than 25 per cent increase in government's capital expenditure which is expected to crowd-in private investment.

Although the Budget clearly refrained from any big bang announcements, the implications of two major announcements i.e. abolishing of FIPB and integration of public sector oil majors would be realized in the way the policy is framed and executed.

While the Budget was overall positive, addressing the key focus areas, which would provide traction to the growth momentum of the economy through multiplier effect, implementation and execution of the various announcements hold the key.