“The budget was undertaken in circumstances like never before…”

The opening statement of the finance minister in her budget speech soon moved into overdrive on her promise of a “budget like never before!” Overall, this budget has been designed for the new world order.

Digital push

What is heartening is that digital has been made the underlying theme of the six pillars of growth.

The launch of MCA21 Version 3.0; the government's support for the development of a world-class FinTech hub at the GIFT-IFSC; the Rs 1500-crore boost to digital payments and transactions; and the outlay of Rs 50,000 crore for the National Research Foundation in next five years — these will undeniably strengthen our digital ecosystem.

Enabling start-ups

The increase in thresholds for both paid-up capital and turnover, and capital gains tax exemption for start-up investment are welcome steps. The move to incorporate One Person Companies to grow without any restrictions on paid-up capital and turnover, allowing their conversion into any other type of company at any time, and reducing the residency limit are big boosts for entrepreneurs. The extension of tax holiday by one more year, and the provision of Rs 15,700 crore for the MSME sector (more than double of last year) will certainly help small businesses to grow.

Infrastructure development

There is a three-pronged approach to infrastructure development — creating institutional structures, monetising assets and enhancing the share of capital expenditure in central and state budgets. The push to roads, railways, power, ports, shipping and waterways, petroleum and natural gas, and urban infrastructure will create the right backbone for sustained growth and expansion of industries.

Increasing the permissible FDI limit to 74 per cent in insurance companies will enthuse foreign investment.

Other measures

The setting up of formal umbrella structures for better synergy between research institutions, universities and colleges is a great step. The amendments to the National Apprenticeship Act will help young workers. A strong emphasis has been laid on diverse employment generation — especially for contractual, gig and platform workers.

Ease of compliance is a highlight of this budget, especially the single-window compliance mechanism, simplification of the reconciliation mechanism for dispute resolution, the positive moves on direct and indirect taxes, reduction of the time-limit for re-opening of assessments, exemptions from audit and the relief measures for dividends.

Keshav Murugesh is Group CEO, WNS, and former Nasscom chairman.