Budget effects transformative shift in economy, says Sanjiv Goenka

R P Sanjiv Goneka Group chairman Sanjiv Goenka on Wednesday said that the Budget has effected a transformative shift in the economy as it moved from discretion-based to policy-based, and from cash-based to cash-less.

Senior consultant Dipankar Chatterjee of L B Jha & Co struck a negative note. “There is no major stimulus to boost growth. With good monsoon, India could have touched 8 per cent growth but the Budget does not show a roadmap how to recover to that level post-demonetisation.”

He, however, found it commendable that despite a 3.2 per cent revenue deficit, the outlays for the social sector had been increased.

Bandhan Bank MD Chandra Sekhar Ghosh said that the banking sector would get a fillip after doubling of Mudra loan, treatment of affordable housing as infrastructure and capex outlay increase by 25 per cent.

“The Rs 10,000 crore recapitalisation is not enough for the PSU banks with the level of bad loan situation,” he said.

Former Coal India chairman and BCCI member P S Bhattacharya was apprehensive about mounting stress on the banking sector owing to the power sector which did not witness revival despite ‘UDAY’ scheme and the Budget did not address the same.

“There is affordable housing policy but now power will not stay affordable. Plant power load factor in the industry had dropped to 60 per cent from 79 per cent. The price will not be affordable,” Bhattacharya said.

Bharat Chamber of Commerce president Rakesh Shah lauded the Budget for having several initiatives like transparency in political funding and reduction in individual tax rate.

Bengal Chamber of Commerce and Industry president Sutanu Ghosh said there was nothing unique in the Budget and it was a regular Budget with some focus on infrastructure and the social sector.