Friends,
The union budget for 09-10 was presented by FM today . It was being awaited with great expectations. I my openion it has been very pragmatic and has given what could have been given in the present circumstances and also it has not taken any thing previously given. In a very strange way the FIIs have sold heavily today and the indices have suffered badly. Tomprrow, may be , on rethink, there would be some coverage of the lost ground , if not the whole . The sailing feachers are as under:
- the deficit will be 6.8% and is on expected lines (it was 6.2% last year). I would add here that the govt has spared industry from stiff doses of taxation and has decided to take care of FRBM at some time later. This should be seen very positively while the FIIs have not liked it. The revenue deficit is projected at 4.8%.
-the FM has had both, the long term and short term , objectives in mind and has very clearly gone ahead without making complecations like his predecesser used to do.
- duties have not been upped and they stay at the prevailing level. This should in fact be celebrated because unconcerned govt would have resorted to raise revenue through excise duty hikes.
-FBT has been scrapped. This is a clear benefit to the whole corporate world and takes away many headaches. The corporate tax remains same.
-MAT has been raised from 10 tho 15% but again the reward has been given in the form of removal of surcharge.
- CTT has been scrapped. This meets a big demand. STT has been left untouched and this has been dampener.
-personal Income Tax Free limit has been raised by Rs 10000/-
There very many other provisions which do not have much bearing . The outlays have been increased substantially and the social causes will be served through increased spending. How else the govt puts money in hands of public. The increased spending will generate demand and resultingly the industrial out put will go up.
The infrastructure is going to have philip as there are some announcements regarding this.
The disinvestment has been discussed as a policy but no road map is given, neither it could have been given.
All in all , we should welcome this budget and not frown as has been done some pundits.
HariOm,
krsnaKhandelwal
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