Nilesh Shah's Budget: Mr FM, bring in super rich tax, monetise resources

The Union budget for FY16 laid the roadmap of fiscal prudence by targeting 3.5 per cent fiscal deficit for FY17. It encouraged global rating agencies to upgrade our outlook and FIIs to invest in our debt market. This year's budget has to provide Rs 1,00,000 crore for the implementation of Seventh Pay Commission recommendations. It also has to provide funds for public investment to keep the economy on growth path.
The Union budget does have benefits of large savings on fuel subsidy due to lower oil prices. If the budget raises taxes or borrowing to fund increased expenses, the economy as well as market will get impacted adversely. If the budget proposes to raise money by monetising its assets from land, natural resources and spectrum and investment in SUUTI, the market and economy will be positively impacted.
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