Finance Minister Arun Jaitley announced Union Budget in parliament on Saturday, Feb. 28, 2015 aiming at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit.
BR Patidar, Director Finance, Shakti Pumps said, "Industry was expecting a lot from this Budget but the focus has really been on social purpose. The finance minister has announced that 100% tax exemptions would be given for investments in the Clean India and Clean Ganga projects."
"Instead 100% tax exemption should have been given for the mandatory 2% CSR spend as this would have attracted large scale funding from corporates for social projects."
"The Finance Minister has also set an ambitious fiscal deficit target of 3% of GDP and current account deficit account target of 1% of GDP. This is however possible only if the foreign currency depreciates which in turn is linked to exports. Exporters from special economic zones should be exempt from MAT as they had made investments after being promised tax holidays. The introduction of MAT had however affected their performance."
"Doing away with MAT would boost exports and help correct currency. In this Budget incentives for solar energy were expected in order to reduce the dependence on the grid. This has not materialized. Nor have hopes about tax exemptions/tax benefits to solar pump manufacturers and solar equipment been met. The positive factor in the Budget is the proposed reduction in corporate tax from 30% to 25%."
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