Noted chartered accountant Dr B L Tekariwal believes that the general budget of the Congress-led UPA government is likely to be a populist one as it would reflect party's election manifesto.
The budget is coming at challenging times against the backdrop of economic revival optimism, moderate economic growth scenario, doubling core sector growth, macro number holding out hopes, high fiscal imbalance, zooming FMCG sector, positive dynamics and rising FDI and Sensex.
Talking to UNI Dr Tekariwal said the budget being the policy document, has to draw the right balance to ensure double digit growth by fine tuning the policies, accelerating reforms, especially financial sector, labour, pension, power and agrarian reforms, raising FDI cap, investment in infrastructure, full convertibility, structural reforms and harness human capital.
He said the focus of budget should be on checking fiscal profligacy, revival of rural economy, achieving FRBM targets, promote inclusive growth, building infrastructure with higher government investment and translate outlays into outcome.
Out of total budget allocation, 30 per cent of the expenditure is only on development and 23 per cent goes on interest, 14 per cent on defence, 11 per cent for salaries and pensions, eight per cent towards subsidies, and non-plan expenditure needs 14 per cent.
He opined that the implementation of manifesto promises would add further pressure on budget expenditure.
''There is a need for transparency and a holistic review of these allocations to provide more for development expenditure considering the needs of the growing economy and to ensure growth with equity,'' he said.
Heavy interest burden of 23 per cent could be curtailed drastically by reducing the size of public debts, which presently constitute 80 per cent of the GDP.
Likewise, defence expenditure should also be reviewed in the present context. The non-plan expenditure should also be reviewed in totality to bring it down to spare resources for capital expenditure and capital formation.
The target of zero revenue deficit appears to be difficult to achieve considering it is more than 4.4 per cent at present, he opined.
In the changing situation, the fiscal consolidation is the only answer and as such subsidies need to be abolished and non-plan expenditure by downsize by the government as suggested by the Pay Commission.
''It is the time to heed danger signals. Progressive policies and firm decision are the need of the hour and reforms should be accelerated by implementing big ticket reforms like Labour Reforms for flexible labour laws, Financial Sector Reforms, Comprehensive Pension Reforms and Disinvestment of PSUs to ensure double digit growth,'' he said.
Mr Tekariwal said infrastructure, especially power sector, should get thrust to make them at par with global standards. Ultra Mega Power Projects (UMPPs) should continue to get tax holiday.
New national policy for farmers should be announced to provide food security and curtail the import bill of food and cereals, which are increasingly in short supply, he said.
He also added that the organised retail sector with a market potential of 85-90 billion dollar should be encouraged and the foreign exchange reserve at 293 billion dollar should be ploughed back either in Sovereign Wealth Fund (SWF) or a State owned investment vehicle to fetch higher returns.
The chartered accountant stated that,'' Talent pool in the form of social development zones (SDZ) can be set up to harness human capital and fill up the crunch worldwide.'' BPO industry has a potential of 50 billion dollar revenue for which BPO hubs should be set up in Tier II & III cities, he said adding that the social sector reforms especially in education and health should be given special thrust.
There should also be a need to check regional imbalances by harnessing growth potential in BIMARU states and eastern part of the country.
In the field of direct taxes, subsidiary taxation in the form of Surcharge, MAT, FBT and Dividend Distribution Tax should be abolished to make tax laws simpler, he said and observed that Wealth Tax should also be abolished.
Tax exemptions and subsidies should be phased out and direct taxes code should be revisited.
Threshold limit for personal income tax should be increased to Rs two lakhs and tax slabs should be restructured. In indirect taxes, roadmap for GST should be chalked out and custom duty rates should be rationalized to two at flat rate of 5 and 10 per cent.
Dr Tekariwal also suggested the ecomony should be revived and public spending should be encouraged to boost the demand.
He asked the government to accelerate the reforms by giving thrust on unfinished agenda like pension and insurance reforms, labour reforms and fiscal reforms. Reforms on subsidies and expenditure should also be initiated.
Another major area was disinvestment and privatisation of profitable Public Sector Undertakings to fetch high returns, which the government can use to meet high fiscal deficit.
Fiscal consolidation on public financial is necessary, he said adding that the combined fiscal deficit of states and centre is expected to be higher than 11 per cent and as such government should bring out a white paper on fiscal situation to achieve fiscal targets.
Showing posts with label Indian Budget. Show all posts
Showing posts with label Indian Budget. Show all posts
Sunday, June 7, 2009
Sunday, February 15, 2009
Expectations run high on eve of India's interim budget
With the economic downturn beginning to hurt India Inc., pulling down exports and industry output, expectations are high from the interim budget to be presented in parliament Monday by Minister for External Affairs Pranab Mukherjee.
Although the measures to be announced by Mukherjee will be interim in nature, as the regular budget for the next fiscal will be tabled after inauguration of a new government following national elections, industry said exceptional circumstances called for special steps.
Industry chambers have accordingly given their wish list and top of that is tax break for both the corporate sector and individuals, as it would have a direct impact on the finances of industries and households alike and help lift demand.
"Tax rate reduction is desirable in the current context," said Suresh Tendulkar, who chairs Prime Minister Manmohan Singh's Economic Advisory Council. "This will essentially generate more purchasing power," he said ahead of the budget.
Industry feels it is unlikely that Mukherjee, who has additional charge of the finance, as Manmohan Singh, who holds the portfolio, is convalescing following a heart surgery, would ignore the suggestion from such a high-powered panel.
The United Progressive Alliance (UPA) government having announced two stimulus packages since December, industry feels this will also be the last chance for the government to comprehensively address the economic slowdown before the ensuing elections.
"A major demand of India Inc. for many years has been for reduction in corporate tax, which remains unattended to," said the Associated Chambers of Commerce and Industry of India (Assocham) in its pre-budget memorandum.
"India Inc. therefore anticipates that Mr. Mukherjee would revisit corporate tax rates in India and not only remove surcharge on it but bring it down to global average of around 26-27 percent, especially at times of meltdown."
Sharing this view, the Federation of Indian Chambers of Commerce and Industry (FICCI) also wanted tax holidays for housing to be extended by five years and the reintroduction of investment allowance, among other measures.
On a larger canvas, what is expected to weigh heavily in Mukherjee's mind is the drop in industrial production in October for the first time in 15 years that was attributed to demand slowdown. Industrial output fell again in December.
Exports have fared no better and logged a decline for three straight months since October, with commerce secretary G.K. Pillai predicting yet another fall in January.
As for Mukherjee, who has presented three budgets in the past as regular finance minister between January 1982 and December 1984, he is clear about what areas need urgent attention of policymakers and spelt that out three days ago at an industry seminar.
"There is a need to sustain our foreign trade, revive foreign investment and generate domestic demand to maintain our growth rates, which are essential for the uplift of the multitudes below the poverty line," Mukherjee said.
Although the measures to be announced by Mukherjee will be interim in nature, as the regular budget for the next fiscal will be tabled after inauguration of a new government following national elections, industry said exceptional circumstances called for special steps.
Industry chambers have accordingly given their wish list and top of that is tax break for both the corporate sector and individuals, as it would have a direct impact on the finances of industries and households alike and help lift demand.
"Tax rate reduction is desirable in the current context," said Suresh Tendulkar, who chairs Prime Minister Manmohan Singh's Economic Advisory Council. "This will essentially generate more purchasing power," he said ahead of the budget.
Industry feels it is unlikely that Mukherjee, who has additional charge of the finance, as Manmohan Singh, who holds the portfolio, is convalescing following a heart surgery, would ignore the suggestion from such a high-powered panel.
The United Progressive Alliance (UPA) government having announced two stimulus packages since December, industry feels this will also be the last chance for the government to comprehensively address the economic slowdown before the ensuing elections.
"A major demand of India Inc. for many years has been for reduction in corporate tax, which remains unattended to," said the Associated Chambers of Commerce and Industry of India (Assocham) in its pre-budget memorandum.
"India Inc. therefore anticipates that Mr. Mukherjee would revisit corporate tax rates in India and not only remove surcharge on it but bring it down to global average of around 26-27 percent, especially at times of meltdown."
Sharing this view, the Federation of Indian Chambers of Commerce and Industry (FICCI) also wanted tax holidays for housing to be extended by five years and the reintroduction of investment allowance, among other measures.
On a larger canvas, what is expected to weigh heavily in Mukherjee's mind is the drop in industrial production in October for the first time in 15 years that was attributed to demand slowdown. Industrial output fell again in December.
Exports have fared no better and logged a decline for three straight months since October, with commerce secretary G.K. Pillai predicting yet another fall in January.
As for Mukherjee, who has presented three budgets in the past as regular finance minister between January 1982 and December 1984, he is clear about what areas need urgent attention of policymakers and spelt that out three days ago at an industry seminar.
"There is a need to sustain our foreign trade, revive foreign investment and generate domestic demand to maintain our growth rates, which are essential for the uplift of the multitudes below the poverty line," Mukherjee said.
Friday, February 15, 2008
Moneycontrol.com Presents BUDGET'08 - The Growth Story
Moneycontrol.com, India’s most-preferred business and finance portal, is gearing up for the Budget’08. To reach out to a wider audience, MC is wearing a new look for this year’s Budget, with spanking and incisive new sections, which will address the issues that affect every strata of society. The new sections are Industry, Personal Finance, Budget 360, Interactive and Others which will encapsulate the impact of Budget across sections of society - right from catching the impact of the FM speech on individual portfolios to the views and analysis of CEOs and experts. MC covers it all. The budget special will be launched from February 15th and March 5th 2008.
In the Industry section, the portal will have pre-budget sectoral reports for viewers understanding on each sector’s growth. It would also feature various industry bigwigs expressing their expectations from the forthcoming budget. The Personal Finance section will have unique sections like tips for investments for new entrants to the stock market and other regular investors, chats, price rise and drops and the impact of the budget on a running household and families! Salient features and the best of the budget, buying and selling advice, budget archives of the past and post budget FII reactions will be covered under Budget 360. Visitors to moneyoncontrol.com will also get to enjoy and take advantage of a unique Interactive section which will have Polls, personalized Tax calculator, interactive contest and Capital Gains calculator.
The Budget’08 is most definitely an important and final budget for Finance Minister P. Chidambaram and the UPA Government. It’s importance comes from the fact that the economy has seen only an upswing in the last 4 years and now suddenly the global meltdown and it’s direct effect on the Indian economy will see each and everyone following the budget with keen interest, making it one of the most important budgets in Indian economic history. Moneycontrol.com’s sole intention will be to provide all the news and views related to the budget.
Mr. Surya Mantha, CEO, Web18, adds, “During the budget last year, Moneycontrol.com experienced a sharp increase in the number of daily visitors and recorded a whopping 217 million page views and 6.04 million unique visitors in the 21 day budget period. This overwhelming response received by the portal last year, compelled us to come up with a more comprehensive offering this time as compared to last year”
Moneycontrol.com has always been on the fore front of the most path breaking financial and economic news in the country as well as stock markets tips, and this new initiative comes as no surprise to its regular visitors. After earning the honour of the most preferred financial portal, Moneycontrol is leaving no stone unturned in dishing out the finest quality coverage related for the Budget’08, for its members and regular visitors. The website experienced a sharp rise in the number of page views and visitors last year. The portal boasts of regular visitors such as stock market bulls, investors, market analysts, CEOs, CIOs, students and many many more.
Moneycontrol.com has also witnessed a sharp rise in the number of female visitors on the portal and expect a sharp increase in the number of women trying to keep a track of the news and views on the Budget. The general belief has been that the number of women investing their money in stocks, mutual funds, etc has seen a tremendous increase in the past couple of years. Moneycontrol.com hopes to to also show the guiding light to the new entrants in the stock market and also the women who will be following the budget and its impact on the markets with keen interest.
The site will also have views of various industry leaders, CEOs and CIOs on their budget expectations. For more log on to www.moneycontrol.com
About Moneycontrol.com:
Moneycontrol.com was conceived as a personal finance vortal on November 5, 1999 and has been growing at a breath-taking rate ever since. On June 1, 2000 it was acquired by e-Eighteen.com Limited and became part of the Television Eighteen India Limited group. Today, moneycontrol.com is the premier end-to-end business and finance vortal for Indian netizens everywhere. Moneycontrol.com is a part of Web 18 Software Services, which in turn is a part of the esteemed Network 18 group and is the undisputed No. 1 Financial destination for investors.
In the Industry section, the portal will have pre-budget sectoral reports for viewers understanding on each sector’s growth. It would also feature various industry bigwigs expressing their expectations from the forthcoming budget. The Personal Finance section will have unique sections like tips for investments for new entrants to the stock market and other regular investors, chats, price rise and drops and the impact of the budget on a running household and families! Salient features and the best of the budget, buying and selling advice, budget archives of the past and post budget FII reactions will be covered under Budget 360. Visitors to moneyoncontrol.com will also get to enjoy and take advantage of a unique Interactive section which will have Polls, personalized Tax calculator, interactive contest and Capital Gains calculator.
The Budget’08 is most definitely an important and final budget for Finance Minister P. Chidambaram and the UPA Government. It’s importance comes from the fact that the economy has seen only an upswing in the last 4 years and now suddenly the global meltdown and it’s direct effect on the Indian economy will see each and everyone following the budget with keen interest, making it one of the most important budgets in Indian economic history. Moneycontrol.com’s sole intention will be to provide all the news and views related to the budget.
Mr. Surya Mantha, CEO, Web18, adds, “During the budget last year, Moneycontrol.com experienced a sharp increase in the number of daily visitors and recorded a whopping 217 million page views and 6.04 million unique visitors in the 21 day budget period. This overwhelming response received by the portal last year, compelled us to come up with a more comprehensive offering this time as compared to last year”
Moneycontrol.com has always been on the fore front of the most path breaking financial and economic news in the country as well as stock markets tips, and this new initiative comes as no surprise to its regular visitors. After earning the honour of the most preferred financial portal, Moneycontrol is leaving no stone unturned in dishing out the finest quality coverage related for the Budget’08, for its members and regular visitors. The website experienced a sharp rise in the number of page views and visitors last year. The portal boasts of regular visitors such as stock market bulls, investors, market analysts, CEOs, CIOs, students and many many more.
Moneycontrol.com has also witnessed a sharp rise in the number of female visitors on the portal and expect a sharp increase in the number of women trying to keep a track of the news and views on the Budget. The general belief has been that the number of women investing their money in stocks, mutual funds, etc has seen a tremendous increase in the past couple of years. Moneycontrol.com hopes to to also show the guiding light to the new entrants in the stock market and also the women who will be following the budget and its impact on the markets with keen interest.
The site will also have views of various industry leaders, CEOs and CIOs on their budget expectations. For more log on to www.moneycontrol.com
About Moneycontrol.com:
Moneycontrol.com was conceived as a personal finance vortal on November 5, 1999 and has been growing at a breath-taking rate ever since. On June 1, 2000 it was acquired by e-Eighteen.com Limited and became part of the Television Eighteen India Limited group. Today, moneycontrol.com is the premier end-to-end business and finance vortal for Indian netizens everywhere. Moneycontrol.com is a part of Web 18 Software Services, which in turn is a part of the esteemed Network 18 group and is the undisputed No. 1 Financial destination for investors.
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