One of the key questions facing the policy makers ahead of the budget is how to ensure growth in the economy especially in the context of the global spillovers in the form of monetary tightening, and prices rises and the impact there of on domestic investment as well as exports.
A panel of experts in Fortune India’s pre-budget roundtable has said that the government needs to focus on infrastructure creation, but should also not lose sight of creating an ecosystem of innovation so that the private sector evolves in a bigger role than getting limited to becoming a supplier to the government. Industrialist Nadir Godrej is of the view that larger budget deficit is tolerable provided the expenditure promotes growth. Former finance secretary Subhash Garg made a point that innovation is the key to put the private sector companies in the next league. Sonal Varma, managing director & chief economist, India and Asia ex-Japan, Nomura suggested that the infrastructure expenditure in the economy needs to be front loaded for the fruits of economic growth to be visible.
Rahul Garg, Partner, Price Waterhouse & Co LLP pointed out that tax to GDP ratio needs to be raised and could be done in the form of new green taxes and extension of optional presumptive taxes to services sector, which will lead to higher revenues and better scope for economic growth.
The other participants in the roundtable were, Gopal Krishna Agarwal, national spokesperson for economic affairs, BJP; and congress spokesperson Gourav Vallabh.