Rishi Dhariwal: The crucial highlight of the budget for spurring growth of the economy are the increase in allocation for NHDP (up by 23%) and the loan take out by IIFCL for infrastructural loans. 'De-bottlenecking' projects are especially valuable to leverage economic activity. If the same holds true for India also, the incremental job creation as well as the spur in consumption caused by the same is a good way to stimulate the economy and a much better measure than giving subsidies which do not have a similar multiplier effect.
Viplove Chaturvedi: Picking up discussion threads from where Yogesh left......
In the backdrop of stated objective of achieving 9% investment in infrastructure, while provision of take-out financing from IIFCL for projects financed by banks under PPP is welcome, the combined fiscal deficit of central government, state government, food/oil/fertiliser subsidy at 12% has potential of pushing out other participants from markets and making funding scarce.
Mayank Kumar: Government has decided to implement GST with effect from 01.04.2010. Currently we have Central VAT and state Value Added Tax (VAT). GST will unify both these taxes. Credit of central VAT will be available to wholesalers and dealers who pay state VAT. Currently this CENVAT credit is not available to them.
This also means that state governments will lose lot of revenue because dealers will only be paying tax after adjusting amount of CENVAT credit available to them. They will be required to revise tax rate. Current rate of 8 % or 12 % of state vat needs to be increased. GST rate at state level should be pegged be around 16-18%.
Fixation of rate and calculation of revenue loss or gain will be very crucial. This should be done at priority if we want to implement GST with effect from 1.4.10. Rate should be fixed so that state revenues are not affected much. Next crucial step will be change in legislation required and to redesign all forms, returns to take care of new system of taxation. Central and state governments need to move very fast and quick to ensure that GST is a reality by April 2010.
Anirudh Gupta : The finance minister has extended tax sops for IT exporters by one year under Sections 10A and 10B of the IT Act.
This is a temporary stop gap measure at the best as it does not encourage new companies to set shop given the 1-yr extension. This will benefit only the existing companies to face the global downturn. So lacks a strategic vision.
Government's steps on Unique ID project, Biometric smart card for BPL Families are appreciable. The measure to relieve employers from paying fringe benefit
tax — however, this entire burden is being borne now by the employees and thus dampens the Income Tax benefits by the removal of 10% surcharge.
Rachna Salgia: The budget has reflected its concern to improve the status of women in the society. Some welcomed changes in the budget include the comparatively reduced tax for women employees which will encourage women to join the productive workforce and will help them to come forwards in various walks of life. Another one is the budget proposals for national literacy mission for girls' education is welcome. Personally, I have welcomed the full excise exemption on branded jewellery.
Comments