Mr.Finance Minister has successfully presented his 5th successive budget yest in the Parliament. First i would like to appreciate him for presenting a bit balanced budget. Its actually quite difficult to prepare budget for a country like India. Whatever lets discuss the ups and downs. Govt's spending on health care, defense, agriculture, renewable energy has gone up which is actually appreciable. In the same time Mr.Finance Minister has increased the tax on crude oil increasing petrol and diesel prices. In fact this is going to create more and more problems. The country is already suffering with high inflation. Increase in fuel prices will lead to increase in price of commodities. What i feel is the Government should hav tied to contain inflation and then increased the fuel prices may be some months later. But one should also remember the fact tht the oil companies are already suffering under huge loss and they are no more ready to take this burden. This is the case with cement pricing also. Next, Dr.FM has reduced tax on solar panels, increased spending on agriculture, and has allocated more for renewable sources. This is really a wonderful move. Whenever increasing crude prices we should get reminded of the fact tht India is deprived of fossil fuels and we should try to conserve fuel as much as possible. Mr.FM has also reduced tax on CFL . Mr.FM has also reduced the tax burden greatly. Then FM has increased tax on cigars and large cars, MUVs and SUVs. Mr.FM also has increased his allocation for defense. This is also a welcome move given the fact tht our armed forces need to ever ready to face the growing threats. The Budget also aims to control fiscal deficit.And as expected budget has benefited farmers i would say. Now drought hit farmers can delay their payments by six months. May be FM could have waived off their loans but the fact is what ever he does it should reach the beneficiaries and not the middle man. In the fertilizer front, Mr.FM has said tht the Nutrient Based Subsidy policy for fertilizers is to become effective from April 2010. Mr.FM has said he would spend to spread Green Revolution in the eastern parts of India. Then it is to be noted tht Mr.FM has concentrated on Banking and infrastructure development. RBI is proposing to issue new licenses to private banks. FM has allocated almost 46% of total plan allocations for infrastructure development. Mr.FM wants to lay at least 20km of highways a day; but i feel this requires complete re-planning of existing policies. He has also promised to improve rural infrastructure. Mr.FM has also promised that first set of UID nos will be rolled out next year as per the schedule. He has also said that INR will have a unique symbol. It is actually quite difficult to prepare a budget for a complex economy like that of India's. But according to me Mr.FM has done a relatively good job. The markets also have given a thumps up; sensex gained 300 points. Whatever we'll have to wait and watch if the Government is able to achieve their target.
8 comments:
Giving comments abt the entire budget is beyond the scope of a normal average human being (unless one is thorough in accounts or have inclination towards the economic reforms) as the FM himself will have a thorough discussion with big shots before presenting the budget.
For ur level it is a very simple analysis u have made... gud...I would have expected something even more better from u...like analysing a particular portion of the budget giving in detail its pros and cons...Anyway Well done!
However for me like salaried person,this budget is really a positive one as the slab for income tax has reduced than the previous year.
a good insight....
I would like to differ with you on one point ! A balanced budget yes, but he did nothing wrong when he increased taxes on fuel ! Our fuel prices are Government regulated as opposed to some nations which have a market controlled environment ! Maybe its time we shift to a mixed approach ?
Also, this budget translates to a "Aam Aadmi" bonanza ! He has reduced the tax slabs which affects the middle class in a big way !
On inflation ? The government really needs to rethink its WPI approach ! Am not asking for a shift to capitalist government but you know, you have to do it when you have to do it !!
Indeed a balanced budget.. and impressive is your layman's way of analysis..
Yes i agree with you.But the most important thing is our development is always not inclusive. Our governments are always worried about communal votes. What effort is being taken by our state and central governments to reduce our burden on crude oil imports and what about their condition now??Agriculture needs entire reforms in scientific aspects and not waiving loans or anything.If u do so,when drought comes again der vl b loans pending again and again.
nice post!!good job!!
A nice comprehensive review of the budget 2010.
yeah ur right form your view,MR.FM has raised the tax slabs which will be benificial for 60% of individuals ,it merely reforms the process not the destination we are trying to achieve.My point is that the decision to broaden the tax exemption limits and to provide increased level of tax exemption will be doin good and would provide fresh impetus with enhanced disposable income.MR.FM has presented a good budget.It will be good for a domestic economy and towards economic recovery.
Post a Comment