Sending the Budget reaction, for Mr. Ashok Pareek - Chairman, ICSI-EIRC.
Would be much obliged if you could publish it.
Regards,
Mala Dasgupta - 9830105433
Post Budget Reaction - "Budget lacks direction on policy issues"
Finance minister Pranab Mukherjee's task was perhaps an unenviable one this year. Amidst the fear of growing fiscal and revenue deficits, the finance minister may have had little to choose between the devil and deep sea. In view of such limitations, he managed to offer a solution which appears at best balanced and aimed at steering the economy from the immediate crises.
Evidently, Mukherjee's Budget lacks a definite direction where policy announcements are concerned. While the government appears in a quandary over the quantum of disinvestment it will be able to achieve, the capital markets hoping for some clear cut direction on the policies relating to FDI in insurance and retail sectors obviously saw neither. Its disappointment is evident in the downslide in equity prices.
The Indian corporate sector too has felt somewhat let down. Minimum Alternate Tax has been a source of discontent for sometime. To make matters worse, the finance minister chose to increase the rate from 10 per cent to 15 per cent at a time when the profit margins have actually disappeared. Besides, income tax rates have not been lowered as was being anticipated by the market. Agreed that exemption limits have been tinkered with, but these are hardly expected to offer any significant relief to the income tax payers.
Ashok Pareek, Chairman, Institute of Company Secretaries of India, Eastern India Regional Council
Finance minister Pranab Mukherjee's task was perhaps an unenviable one this year. Amidst the fear of growing fiscal and revenue deficits, the finance minister may have had little to choose between the devil and deep sea. In view of such limitations, he managed to offer a solution which appears at best balanced and aimed at steering the economy from the immediate crises.
Evidently, Mukherjee's Budget lacks a definite direction where policy announcements are concerned. While the government appears in a quandary over the quantum of disinvestment it will be able to achieve, the capital markets hoping for some clear cut direction on the policies relating to FDI in insurance and retail sectors obviously saw neither. Its disappointment is evident in the downslide in equity prices.
The Indian corporate sector too has felt somewhat let down. Minimum Alternate Tax has been a source of discontent for sometime. To make matters worse, the finance minister chose to increase the rate from 10 per cent to 15 per cent at a time when the profit margins have actually disappeared. Besides, income tax rates have not been lowered as was being anticipated by the market. Agreed that exemption limits have been tinkered with, but these are hardly expected to offer any significant relief to the income tax payers.
Ashok Pareek, Chairman, Institute of Company Secretaries of India, Eastern India Regional Council
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