Wipro’s Chief Financial Officer Aparna C Iyer lauded the Union Budget 2024 for its well-thought-out vision and fiscal prudence on Wednesday. The CFO said that the success now depends on the implementation of the initiatives.
“The vision being of ‘Viksit Bharat 2047’ and then the four personas that they’re going to be dealing with in terms of, demography: ‘Garib’ (poor), ‘Mahilayen’ (women), ‘Yuva’ (youth) and ‘Annadata’ (farmer), is perhaps the right four personas that you want to cater to. The simplicity of the thought process and clarity is something that has resonated with me,” Iyer said, speaking at Bangalore Chamber of Industry and Commerce (BCIC) session on Budget analysis in Bengaluru.
The CFO especially expressed her confidence in the credibility of the fiscal numbers presented in the budget, noting a huge improvement in fiscal discipline. “There’s so much more credibility to the numbers and achievability. And to be able to say that we will be below 4.5 per cent in fiscal deficit and that it is something within the vicinity – it’s something that we can absorb a lot from,” she added.
In addition to fiscal prudence, Iyer pointed out the budget’s special focus on enhancing employability, skilling and job generation, alongside a focus on energy security and infrastructure development. “If you’re able to spend in all the right directions, your Capex spends are far more powerful, that can give impetus to growth,” she said.
Commenting on employment and internship schemes announced in the budget, Iyer gave a nod to the positive impact these initiatives could have on workforce participation and skills development. “It encourages people to come through EPFO. It will also provide the government more formal data. And I think that is also something that is noteworthy,” Iyer added.
The 2024 budget introduced a Rs 2 lakh crore package under the Prime Minister’s scheme aimed at boosting job creation in India. This initiative will focus on skilling two million young people, offering education loans up to Rs 10 lakh for higher studies at domestic institutions and providing internship opportunities for 10 million youths over the next five years.
Ease Of Doing Business
Litigations and assessment times have long been noticeable crutches for the corporates in India and they have been repeatedly flagged by India Inc. The central government in the Union Budget 2024 introduced several measures to ease some jitters.
“I propose to thoroughly simplify the provisions for reopening and reassessment. An assessment hereinafter can be reopened beyond three years from the end of the assessment year only if the escaped income is Rs 50 lakh or more, up to a maximum period of five years from the end of the assessment year. Even in search cases, a time limit of six years before the year of search, as against the existing time limit of ten years, is proposed. This will reduce tax-uncertainty and disputes,” said Finance Minister Nirmala Sitharaman while presenting the budget on Tuesday.
The FM outlined several measures to address tax litigation and streamline dispute resolution. To tackle the backlog of appeals, more officers will be assigned to handle high-impact cases. The introduction of the Vivad Se Vishwas Scheme, 2024 aims to resolve pending income tax disputes. Monetary limits for filing appeals will be increased to Rs 60 lakh for direct taxes, Rs 2 crore for excise and service tax and Rs 5 crore for Tax Tribunals, High Courts and the Supreme Court. Additionally, the scope of safe harbour rules will be expanded and made more attractive, while the transfer pricing assessment procedure will be streamlined, all intended to reduce litigation and provide greater certainty in international taxation.
All these measures were well-received by BCIC members. However, they also expressed a desire to further reduce assessment times to three years.
“The government has been consistently focusing on improving the ease of doing business and implementing tax reforms. The recommendations from the 53rd GST Council meeting was a big step forward, providing much-needed clarity on issues close to the industry,” the Wipro CFO told BW Businessworld on the sidelines of BCIC event.
“The reforms, including waivers on interest and penalties for the initial years post-GST and the rationalisation of tax structures, are very welcome. This budget also reflects progress, with initiatives like TDS reform and decriminalisation, thanks to the BCIC’s recommendations. Reducing the reassessment time limit from 10 to 5 years is another positive development. However, the success of these reforms will depend on effective implementation and execution by assessing officers, which will ultimately determine their impact,” Iyer added.
In an earlier interview, Aarin Capital Chairman Mohandas Pai said that the Indian government needed more work on ease of business and lengthy court processes, which are hurting the corporates in the country. “Tax disputes have surged from Rs 4.5 lakh crore in 2014 to Rs 12 lakh crore in 2023, reflecting the growing strain on the judicial system,” he had said. Pai had also called for easing of regulatory pressure on businesses.
