New Delhi, Feb 1: Commenting on Union budget 2017, Zee Entertainment and Enterprise Limited MD and CEO Punit Goenka said that Union Budget reflects that government’s positive outlook for future. He said that the budget shows government’s commitment towards creating a stronger and balanced economy. He hoped that with remonetisation, spending in growth-centric areas will increase and wipe out negative impact on the economy after demonetisation.
He tweeted, “ #Budget2017 speaks a lot about the Government’s positive & committed approach towards creating a stronger & balanced economy. Being directionally right & focused on spending in growth-centric areas, it clearly reassures the fact that #Remonetisation is in! ”
Union Finance Minister Arun Jaitley in his budget speech also emphasised on fiscal consolidation. He said, “The Government has also continued on the steady path of fiscal consolidation, without compromising on the public investment requirements of the economy. Externally, the economy successfully weathered a number of shocks, the redemption of FCNR deposits, volatility from the US elections and the Fed rate hike. According to IMF forecast, India is expected to be one of the fastest growing major economies in 2017.”
[Also read: Budget 2017: A breakdown of how government earns and where it spends]
Finance Minister Arun Jaitley in budget speech has also said, “The pace of remonetisation has picked up and will soon reach comfortable levels. The effects of demonetisation are not expected to spill over into the next year. Thus IMF, even while revising India’s GDP forecast for 2016 downwards, has projected a GDP growth of 7.2% and 7.7% in 2017 and 2018 respectively.”
Arun Jaitley further said, “The World Bank, however, is more optimistic and has projected a GDP growth of 7% in 2016-17, 7.6% in 2017-18 and 7.8% in 2018-19. This pick up in our economy is premised upon our policy and determination to continue with economic reforms; increase in public investment in infrastructure and development projects and export growth in the context of the expected rebound in the world economy. The surplus liquidity in the banking system, created by demonetisation, will lower borrowing costs and increase the access to credit. This will boost economic activity, with multiplier effects.”
Finance Minister Arun Jaitley said that demonetisation has increased lending capacity of the banks and banks will successfully disburse loans to boost consumption in the economy. He said, “There is early evidence of an increased capacity of Banks to lend at reduced interest rates and a huge shift towards digitisation among all sections of society. We firmly believe that demonetisation and GST which were built on the third transformational achievement of our Government, namely, the JAM vision, will have an epoch-making impact on our economy and the lives of people.”