Budget 2019, good and bad for Delhi-NCR?

Government India’s first budget in their second term was not exciting. It did not announce big reforms. With their massive mandate, they could have taken bolder policy decisions.

Some of the highlights are: Government brought 99.3% of the companies under 25% corporate tax slab. There will be a TDS of 2% for withdrawing cash more than INR 1 crore. It has relaxed norms to invite foreign direct investment in sectors such as aviation, media, insurance, and single brand retail. Petrol and diesel will be costlier.

Andy Mukherjee writes, “ Bureaucrats are trying to make up the revenue shortfall by taxing anything that moves. Instead of confronting the sober reality, revamping a flawed goods and services tax, and taking steps to pull the economy out of a synchronized slowdown in consumption and private investment, bureaucrats are trying to make up the revenue shortfall by taxing everything that moves.”

Sales of shampoos, soaps, detergents and biscuits are slowing down. With the slowing economy it will be only handful of companies, who will be growing, or making money. The widespread growth will not be there.