The Budget for 2018 focused on promoting entrepreneurship and proposing structural changes to convert the economy to a more outward looking policy framework while also taking an active stance in promoting a green environment and providing an enabling environment for public-private partnerships, said First Capital in their Budget 2018 review.
Government plans on a sustained path of fiscal consolidation as it aims for the first time to achieve a revenue surplus and to reduce budget deficit to 4.8% of GDP for 2018 while the Debt to GDP ratio is expected to improve to 77.5%.
With Government’s revenue enhancement strategies on track, the Budget has proposed large number of low interest and interest free credit schemes for a range of small and micro industries and startups supported by establishing incubators with a vision to enhancing entrepreneurship while para-tariff removal for 1,200 goods and supporting infrastructure including creation of EXIM windows are proposed accelerate growth in the tradable sector.
The Budget has a special focus on creating a green environment with tax concessions on electric vehicles and solar panels, implementation of a carbon tax and concessions for the manufacture of degradable products while PPPs are promoted by establishing a single agency and creating regulating framework for PPPs.
As regards measures relating to capital market development, the Budget proposes improving legal and policy framework of the capital market, improving liquidity via listing of non-strategic enterprises and allowing the state to raise equity and debt from the capital markets, First Capital said.
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