_1RVL[HUEXWPDQ\ERXQGDULHV_ CA. Ninad Karpe No sixer, but many boundaries ! When the Finance Minister rose to present the Budget in the Parliament on 28th February, 2015, there were a lot of expectations from all sections of industry. Most expected some big ticket reforms and a strong message to foreign investors that India is ready, willing and open for business. The Finance Minister may have disappointed those who expected big ticket reforms, but he hasn’t presented a disappointing budget. This was the first full Budget of the new Government, under the backdrop of a strong GDP growth of 7.5 per cent and precipitous drop in oil prices. The Indian economy is truly in a “sweet spot” and if the fiscal deficit is handled well, it is now “ready to fly”. There is strong push in the Budget on the infrastructure, social sectors and education and skilling. The Finance Minister has underlined the need to a strong push on public investment, due to the weak private investment in infrastructure via the PPP model. This is a modulation from the earlier policies where the thrust was exactly the opposite – public money was not available for huge investment required in infrastructure and hence, private investment had to step in. ¯126 There are a slew of announcements on increasing the social security net – increase in allocation to MNREGA, accidental death insurance of ` 2 lakhs for an annual premium of ` 12 and many more schemes – all designed to provide social security to the under-privileged. The focus of the Government on skilling continues in this Budget. Skilling initiatives of the Government which are presently dispersed across various Ministries will be consolidated under the National Skills mission through the Skill Development and Entrepreneurship Ministry. This Mission will also standardise procedures and outcomes across 31 Sector Skill Councils. A new scheme (Deen Dayal Upadhyay Gramin Kaushal Yojana) has been announced to enhance employability of rural youth. ` 1,500 crores has been set apart in this budget for this scheme and, interestingly, disbursements will be made through a digital voucher directly into the qualified student’s bank account. Availability of finance to students wanting to pursue Higher Education has never been easy in India. This Budget has made a bold announcement and hopefully, it ensures that no student is unable to pursue higher | The Chamber's Journal | 0DUFK | 669, | SPECIAL STORY | Finance Bill, 2015 | education due to lack of finance. A fully IT based Student Financial Aid Authority will be set up to administer and monitor scholarships as well as loans through the Pradhan Mantri Vidya Lakshmi Karyakram. Other than that, many new educational institutes (AIMS, IIT, etc.) have been announced to be set up across India. The IT industry has not much attention in this Budget. In a short span of two decades, Indian IT companies have emerged as global leaders, employing 40 lakh people directly, with revenues of USD 150 billion, including exports of over USD 100 billion. IT industry contributes to around 8 per cent of the GDP and is expected to grow by 13 per cent next year. In the early 1990s when the IT industry was in a nascent stage and growing at a scorching pace, the common joke was that the industry was growing fast because the government could not understand the IT industry! The current Budget has very little to offer to the IT industry. The Finance Minister has acknowledged the leading role played by the IT industry and has proposed a new scheme or incubation of start-ups, especially technology start-ups. He has announced that the Government will establish a new mechanism to be called SETU (Self-Employment and Talent Utilisation). An amount of ` 1000 crores has been set aside for SETU, which will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start-up businesses, and other self-employment activities, particularly in technology-driven areas. Incubating and mentoring start-ups is really the need of hour. If India wants to become a meaningful player in the global IT product space, it will need to mimic some of the factors which have made IT companies successful in the Silicon Valley. In the Valley, there is an excellent ecosystem, which supports IT start-ups and hopefully, SETU will borrow the best practices from the Silicon Valley and create at least 100 world class IT start-ups. A lot more could be done to encourage the IT industry, which is a significant part of India’s economy. The Finance Minister has also promised many structural reforms – implementation of GST w.e.f. 1st April, 2016, new bankruptcy law, crackdown on black money stashed abroad, direct cash transfers (JAM – Jan Dhan Yojna, Aadhar and Mobile) and a host of other measures. All in all, the Finance Minister has presented a Budget with a host of measures which will have a salutary effect on the economy. There may not be a Sixer in this Budget, but there are many boundaries – just as well, given the World Cup fever! We must plunge heart and soul and body into the work. And until we are ready to sacriſce everything else to one Idea and to one alone, we never, never will see the Light. SS-VI-119 | The Chamber's Journal | 0DUFK| 127 ¯