MUMBAI, INDIA - “The Union Budget 2014-15 has one too many favorable provisions for the common man. The Budget encompasses reforms to upgrade diverse sectors of the economy by undertaking development programs. It has signaled growth as a top priority of the government, thereby improving the investment climate for domestic and foreign investors. 

However, certain provisions in the Finance Bill have overturned the judgments of the Supreme Court and High Court leading to far reaching confusion and chaos”, said Mr. Firoze B. Andhyarujina, Senior Counsel, Supreme Court of India during an interactive meeting on “Implications of the Budget 2014-2015” jointly organized on July 11, 2014 by WTC Mumbai and the All India Association of Industries. The budget has tinkered with laws leading to hardships for the common man. The need of the hour is clarity of laws besides building trust by the government towards its law abiding citizens. 

The clarification of policies is likely to continue in the near term, Mr. Andhyarujina stated. Affirming the views of Mr. Andhyarujina panelist Mr. Nishith Desai, Founder, Nishith Desai Associates said the country is in need for less government interference and more governance. India needs to learn best practices from the US and UK for designing an unambiguous taxation structure. It is vital that drafts men be involved in designing legislative bills henceforth. Mr. M. S. Mani, Partner, Deloitte India elaborated on the indirect taxation code of the Government. The service taxes purview has been expanded to include commercial, economic and business activities. The budget stipulates no definitive time frame for the implementation of the GST. 

Lastly, the budget has given the much needed boost to the manufacturing sector by slashing excise duties and custom duties of key resources required for manufacturing. Mr. Jairaj Purandare, Founder Chairman, JMP Advisors Pvt. Ltd said the Union Budget 2014-15 signals reforms with provisions such as smart cities, e-visas, development of power sector, infrastructural sector, revival of the coal industry, linking of rivers, skill development programs, incentive for housing and FDI cap changes in defense and insurance. 

However, proposals alone cannot make a difference to the economy. Ensuring execution of the said provisions is of paramount importance to generate sustainable growth in the next five years. Earlier, in his welcome remarks Mr. Y.R. Warerkar, Executive Director, WTC Mumbai said the budget is pragmatic, all encompassing with intense focus on development, particularly the social sectors. The budget offers big relief to tax payers. The sops announced in the budget are distinctly reforms –oriented aiming to lift economic growth to 7-8 percent in the next 3-4 years by promoting manufacturing and infrastructure and rationalizing subsidies. 

The Finance Minister has sought to retain the budgetary deficit at 4.1 percent of gross domestic product this year and proposed to bring down the deficit to 3.6% in 2015-16 and further to 3% in 2016-17. Ms. Rupa Naik, Executive Director, All India Association of Industries and Director-Projects, MVIRDC World Trade Centre proposed the vote of thanks. In Photo (L-R):Mr. Jairaj Purandare, Founder Chairman, JMP Advisors Pvt. Ltd, Mr. Nishith Desai, Founder, Nishith Desai Associates, Mr. Firoze B. Andhyarujina, Senior Counsel, Supreme Court of India, Ms. Rupa Naik, Executive Director, All India Association of Industries and Director-Projects, WTC Mumabi, Mr. M. S. Mani, Partner, Deloitte India and Mr. Y.R. Warerkar, Executive Director, WTC Mumbai.

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