Sanjiv Goenka, chairman of RP-Sanjiv Goenka Group has lauded the budget presented by Finance Minister Nirmala Sitharaman calling it a 'bold and completely inclusive' taking care of the sentiments and aspirations of all stakeholders of the society and economy.
"I think it is an outstanding budget. I think it is a budget which is completely inclusive. It takes into account, the sentiments and aspirations of all the stakeholders of the society and the economy. Infrastructure, education, water, sanitation, everything is been taken care of. Reduction in taxes, Simplification in taxes. We could ask for more, but I genuinely believe, we have to get away from this mindset of asking and asking. I think what they have done is bold and historic. It is something that we should applaud and we should thank them for", said Goenka.
The Finance Minister during the budget also announced the abolition of the Dividend Distribution Tax (DDT) which has been hailed as a milestone by some while others criticised the move calling it a negative move for domestic investors as the dividend will now be taxed in the hands of the investor.
Domestic companies at present are subject to DDT at 15 percent of the aggregate dividend declared, distributed or paid. As it also includes a 12 percent surcharge and a 3 percent education cess, the effective DDT rate comes to 20.35 percent.
This year's Budget assumes tremendous significance as the Indian economy is facing multiple challenges such as a rise in inflation, unemployment, farmer distress and a dip in GDP growth. While beginning her Budget speech, the Finance Minister had said that the focus would be on increasing incomes and elevating purchasing power. She had outlined its three themes - 'Aspirational India, Economic Development for all, and that India shall be a caring society.'
The Budgetary session commenced from January 31 with the budget being presented on February 1. The first phase of the session will conclude on February 11, while the second part of the session will begin from March 2 and end on April 3. On January 31, the government presented the economic survey which gave an overview of how the economy fared in 2019. The Indian economy gained a lead ahead of the UK and France to gain the fifth position in terms of GDP by making a 2.9 trillion dollar economy. According to the economic survey 2020, despite a slowdown in the Indian economy, it has managed to stay afloat in the global slowdown, faring better than the BRICS nations such as Brazil, Russia, South Africa and is on par with China.