In a comprehensive analysis, industrialist Anand Mahindra shared his perspective on the Interim Budget presented by Finance Minister Nirmala Sitharaman.
He emphasized the tendency to create unnecessary drama around the Budget each year, heightening expectations for transformative policy announcements.
Mahindra stressed that the Budget should primarily serve as an opportunity for prudent financial planning, aligning with fiscal responsibility.
Expressing his satisfaction with the recent budget, Mahindra highlighted several positive aspects.
First, he applauded the brevity of the Finance Minister's speech, seeing it as a communication of quiet confidence. He also welcomed the absence of populist measures typically associated with pre-election budgets, hoping for a sustained departure from this tradition.
The fiscal deficit target exceeded expectations, with Mahindra praising the prudent approach taken.
One key point of contentment for Mahindra was the absence of major tax and duty changes.
Recognizing the importance of stability and predictability for businesses, he appreciated the government's commitment to maintaining these aspects.
Notably, he emphasized the positive impact of the higher Tax to GDP ratio, which has long been anticipated and serves as a foundation for fiscal flexibility and robust expenditure when necessary.
Mahindra provided four reasons for his satisfaction with the Interim Budget. Firstly, the brevity of the Finance Minister's speech, signaling confidence.
Second, the avoidance of populist announcements traditionally associated with pre-election budgets. Third, the surpassing of fiscal deficit targets, indicating a prudent fiscal approach. Lastly, the absence of significant tax changes, highlighting stability for businesses.
As the Finance Minister presented the government's last Budget before the upcoming Lok Sabha elections, Mahindra commended the decision to resist large giveaways. Instead, the budget increased the capital expenditure outlay to 11.1%, amounting to ₹11.11 lakh crore. The government also outlined plans to reduce the fiscal deficit to 5.1% in 2024-25 from the current 5.8%.