Budget reactions from ANAND RATHI ,Pls Carry

Dear  Murali Sir,

 

Pasted below are the Budget reactions from Mr. Anand Rathi , Chairman ANAND RATHI, Financial Service

 

Please feel free to use it

 

 

Budget views in 300 words:

 

Overall, the budget maintains a fine balance between growth and fiscal situation given the difficult circumstances. Being the first budget from the new government, this should help lay a strong foundation for its five-year term and should result in GDP growth returning to 9-10% band and fiscal situation improving due to improved infrastructure and buoyant tax revenues in medium to long term.

 

FM has intelligently attempted to keep most economic sectors and segments of society happy by offering some benefits. Recognizing the continuing difficult global economic environment, he has maintained the focus on growth despite the unfavorable fiscal situation. Removal of fringe benefits tax and surcharge on personal income tax, nominal hike in basic exemption limit, continuing the reduced excise duty and service tax will encourage spending. Commitment to important economic reforms like introduction of GST in 2010, divestment of PSUs above 51% government ownership and encouragement of FDI / FII inflows (without specific details), simplification and compliance of tax laws (new tax code, presumptive tax for small businessman, SARAL II), are very significant features of the budget.

 

While increasing the allocation to national highway program and urban renewal mission, the FM has in line with the UPA policies, enhanced allocations for rural and agricultural sector through irrigation, housing, bima yojna, electrification, roads, NREG and cheaper farm loans. The focus on inclusive growth continues by covering under-privileged through smart card and engaging women through self–help group.

 

The media and the markets had raised excessive expectations on several counts and feels disappointed in the short-term due to lack of removal / reduction of STT and specific amounts on divestment, FDI and roadmap of fiscal consolidation. Increased government borrowing may in the short-term impact inflation and interest rates but the government could garner resources from areas not announced in the budget like 3G spectrum auction, higher divestment, increased FII and FDI flows etc.

 

 

 

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Regards,
Alpesh / Anirudh
9869121167 /9892343828
+91 - 22 - 22813797 / 98
Paradigm Shift Public Relations

--
Regards,
Alpesh / Anirudh
9869121167 /9892343828
+91 - 22 - 22813797 / 98
Paradigm Shift Public Relations