Ashok: you could not have put it more appropriately.
given situation, the budget is not bad though expectations, as always
happens,were high.Additionally,
floating stories before the budget .Eg: IT exemption to be raised to
Rs 2 lakh; exemption on housing loan interest to be upped to Rs 2 lakh
and the like.
Pranab babu is also right when he explains the disinvestment
issue.Accordingly, before experts and analysts begin to flay the
budget, a thought should be spared to what the ground realities
are.Also ,as is evident now, disinvestment has not been given the go
by.
Of course,like in all budgets,the surprises,unpleasan
do crop up when one reads the fine print--which is why the initial
excitement on the FBT is now being seen differently especially as the
levy would be borne by the employees.
Nevertheless,
the social sector which has benefited with the aim being: inclusive
growth.
Also lets not forget.The allocation for infrastructure development ,if
actually translated into the desired work ,could bring about a major
change in different industries connected with building activities
,including cement.This could have its spin offs for other sectors.
So,to add to what Ashok says,Pranab babu has done the best under the
given environment.
tyagaraj sharma
bangalore
On Wed, Jul 8, 2009 at 9:47 PM, T.N.Ashok<ashoktnex@gmail.
>
>
> friends,
> there has been much heat and debate on the 2nd budget presented by UPA by
> both the people , corporates and so called pundits and analysts sitting in
> newspapers.
>
> here is my take on the budget both as a journalist, corporate consultant and
> public affairs advisor.
>
> First, dont compare Pranab da's budget with Chidambaram'
> presented under different environment. Chidambaram is boom time and Pranab
> is bust time.
>
> Second , stock markets nosedived on the first day of Pranab da's budget.
> Stock markets are not a true indicator of a country's economy. They only
> show you the trends of hot money , portfoio investments which are prone to
> capital flight at the slightest economic disturbance. India depends on FDI
> which is more than 60% and they are tied and cannot be pulled out easily.
>
> Story is stock market dipped 700 points on first day of budget because
> according to Rakesh Jhunjhunwala, there was no announcement on FDI, no firm
> statement to tackle recession, securities transation tax was not scrapped,
> dividend distribution tax was not abolished. Yes could scrapped dividend
> istribution tax, it has led to unnecessary double taxation for corporates
> and other players. securities transaction tax certainly cannot be scrpped
> because it is a major revenue earner for the government judging by the
> volume of transactions in the stock markets.
>
> Fact, Pranab da could not have made a statement on FDI because, most foreign
> players are trying to take money out of india to settle debts at home. Only
> when they are strong at home will they ring back investments into india. so
> no point in making any forward looking statement or polocy right now.
> Dada has clearly said budget is not a one time exercise and that
> announcements can be made outside also.
>
> The budget has given only marginal reliefs to income tax payers. People
> expected exemption limit to be ushed to 200,000 . Yes, this was belied. But
> you cant blame the govt because the entire budgetary exercise was to the
> appease the rural folk , NREGA, 25 kgs rice programme, rural employment,
> etc.
> Funding for infrastruture at rs 100,000 crore poor, no doubt, because
> infrastruture needs $200 billion of which power sector alone will suck up a
> majority portion.
>
> A budget presented at a time of joblessness , recessionary trends, low
> growth and high fiscal deficit and burgeoning non plan expenditure, cannot
> make bold statements because there is no economic or federal reserve
> backing. It has to be cautious and dada made the best budget under the
> circumstances, as the comedian vadivelu and vivek often say, ESCAPE, he did
> that with satisfying the rural masses and giving fringe benefits ( fbt was
> scrapped, surcharge was scrapped) to the people and corporates.
>
> TN Ashok, ex Economics Editor, ex Executive Director , Communications ,
> ALSTOM grup of companies.
>
>
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