Allocation for Infrastructure in Budget will Spur Growth: Dr. Shovan Ray


Kochi: Delivering the keynote address in the budget analysis seminar organised by Kerala Chamber of Commerce and Industry (KCCI) in association with Naipunnya School of Management here the other day, Dr. Shovan Ray, Professor at Indira Gandhi Institute of Development Research, Mumbai said the high allocation made for infrastructure sector in the 2017-18 Budget will help spur growth and employment creation.

The Finance Minister’s decision to halve income tax rates for individuals earning Rs 2.5 lakh to Rs. 5 lakh from 10 per cent to 5 per cent was aimed at appeasing lower middle class people for their patient waiting, said Dr. Shovan Ray. However, he opined that demonetisation was not a success and it can never curb black money.

Dr. Shovan Ray further said that the budget assumed great significance in the present scenario as the Planning Commission no longer exists and railway budget merged with the Union Budget. “The political funding reforms proposed in the budget to curb corruption are a notable move. The reduction in corporate tax is also encouraging,” he said.

Dr. Shovan Ray is a visiting professor at Cambridge University. He is also serving as Advisor, Oil Co-ordination Committee, Ministry of Petroleum and Natural Gas; Member, Economics, Bureau of Industrial Cost and Prices, Economic Affairs Office, United Nations, Geneva and Senior Consultant, National Institute of Public Finance and Policy.

Raja Sethunath, Chairman, KCCI, presided over the meeting. Fr. Paul Kaithottungal, Principal, and Dr. Oommen Mammen, Dean, Naipunnya School of Management and A J Rajan IAS (Retd.), Secretary, KCCI, also spoke on the occasion.