Budget 2016 Reactions: G Murlidhar, Kotak Mahindra Old Mutual Life Insurance

kotak mahindra bank logo“Pre-speech reading based on the Budget and the information available, it seems to be well balanced and progressive budget, the most prominent feature is the fact that financial prudence is maintained without compromising the development costs. The budget deficit is contained at 3.9 per cent in the current year and further reduced to 3.5 per cent in the budget gives a lot of confidence in the market.

The emphasis on rural and social sectors, obviously, with significant investments in irrigation, health, road infrastructure, agriculture, crop insurance, MGNREGA, and high-end all the time for rural agricultural credit. In addition, the focus is on activation than Dole-outs.

Development of infrastructure and power will make the country more efficient and attractive for investment. A significant contribution to the development of education and skills, aimed at collecting demographic dividend. Attention is paid to encourage start-ups and increase the convenience of doing business.

Reforms in the financial sector received a boost with the capitalization of banks and the creation of support systems for banks, to restore the Distressed Assets. The dividend tax was unexpected, but justice only applies to higher levels of income. As for the insurance industry, we need to learn the specifics, but there are some small, but positive steps, such as a reduction in the tax inspectorate single premium annuity policies, and to increase the limit for employer contributions to pension funds.

In general, this is a positive long-term budget objectives. Branch will look forward to the implementation of the initiatives outlined. (G Murlidhar, Managing Director at Kotak Mahindra Old Mutual Life Insurance)

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