R VASUDEVAN (044- 42148569)

Item (1) PSU Banks   Please refer my Email dt.8th July 2009.   The following facts confirm the validity  of my suggestion.   a)                 Last year ALL INDIA BANK ENPLOYEES and OFFICERS threatened to disclose list of Big Bank loan defaulters.   Eventually these Associations dropped this threat for reasons best known to them.   According to an official report the PSU BANKS made huge profits. But the total NPAS have gone up by 11 thousand crors.   Total MPA may be about a few lackh crores.   b)                Higher rate of tax on high income groups.   No less a person than Mr. Narayanamoorthy, chief Mentor INFOSYS has also suggested this on the eve of the budget.   c)                 Excise duty concession on luxury cars – Roll  Back   It is necessary to raise excise duty on costly cars and bikes, sold and use on the Roads in  India.   This has been emphasized by the Mr. CHHAVI DHING, Associate fellow on transport and URBON Development – The energy and Resources Institute New Delhi. (Courtesy  Times of India Dt 15th 2009)   The percentage of use of public transport is less than New Delhi & Mumbai.     Personal Profile: Name                                       :         R. VASUDEVAN Age                                          :         75 yrs Educational Qualification           :         MA (Economics), B.L.                                                           Regular reader B.L. particularly SUNDAY issue Very much interested in helping poor.

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Dear Editor,

 

I am attaching my ‘Reactions on Specific Budget Proposals', alongwith my brief profile and a photograph.

 

Best Regards,

D.R.Dogra
Dy. Managing Director
Credit Analysis & Research Ltd.
4th Floor, Godrej Coliseum, Somaiya Hospital Road
Off Eastern Express Highway
Sion (East)
Mumbai 400 022
India.

 

Tel No.+91-22-67543434 / 35

Mobile : +91-98204 16002         
Fax No.+91-22-67543457

 

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Opinion for Budget Line

Dear Sir,

               My Sanjay Razdan, managing director of Capita India has written a paragraph for budget Line. I am attaching his photograph along with this mail and

 I would really appreciate if you can feature the same in your budget line.

 

“The budget has been positive for the IT-ITES sector as most of the expectations of the Industry have been met. The biggest expectation was the extension of the Income Tax holiday which has been met. Though personally I would have liked it be for at least 3 years. The elimination of the anomaly in the formula for SEZ units and removal of FBT were other long standing demands of the Industry which have been met. The other welcome measure for the sector is the introduction of the ‘Safe-Harbour’ rules and alternative dispute resolution mechanism for transfer pricing adjustments. Hopefully, this will provide a greater deal of certainty in the Transfer Pricing assessments. Though the Minimum Alternate Tax has been increased from 10% to 15% resulting in a higher payout for the IT-ITES units, but the same will now be available for set-off for a longer term of 10 years. Overall it is an inclusive and balanced budget with greater focus on increased public spending and an effort towards reviving the economy.”

 

Quote from Sanjay Razdan on the budget. He is Managing Director Capita India.

 

Thanks and Regards,

Tushar Santra

09967462250.

 

 

Please do not print this email unless you really need to.

 

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Budget reactions on FBT abolition and its implication to employees by Dr. Rakesh Gupta

Dear Mr. Murali,


I would like to take this opportunity to write this mail to you on the
recent abolition of FBT and how its going to impact the employees.


Please find below the reactions on the abolition of FBT by the government
and the increased burden of tax on employees by Dr. Rakesh Gupta, Senior
Advocate and former ITAT (Income Tax Appellate Tribunal) member. Also,
attached his photograph for the same.


Hope you will be able to carry this news for the benefit of your reader and
guide them about the implication of FBT abolition to them.


Thanks and regards,


Farooque Shaikh
-----------------------------------------------------------------
Ogilvy Public Relations Worldwide
Tel.: +91-22-44344669
Cell: +91-9819753272
www.ogilvypr.com


(See attached file: Article on tax burden on employees post FBT abolition
- Dr. Rakesh Gupta.doc)(See attached file: Photo - Dr. Rakesh Gupta.jpg)

Advocate and former Income Tax Appellate Tribunal (ITAT) member
Would the Tax on Perquisite (Post FBT Abolition) Over Burden the Employee?

Dr. Rakesh Gupta
Advocate and former Income Tax Appellate Tribunal (ITAT) member

The Union Budget is out. Industry's main demand of Abolition of FBT has
been met. Contribution to an approved Superannuation Fund exceeding Rupees
One Lac and ESOP's to employees will be now chargeable as perquisite in the
hands of the employees. That there would be further impact of taxation in
the hands of the employee is clear, as the ministry would now define the
tax incidence on employees on account of the fringe benefits that they get
from their employers. The question that would be arising in the minds of
the millions of employees would be the likely impact on them from the
change. Yes, they got a few sops from the Budget.

The basic exemption limits were raised by Rs 10,000/ giving them a net
benefit of Rs 1,000/. Employees above Rs 10 Lacs taxable salary got extra
benefit due to doing away of the 10% surcharge on their income tax. But
would they still lose overall from the budget provisions, as the burden of
taxation is passed back to them. After all most companies had adjusted
their pay packages on the basis of the Cost to Company of the employee,
including the Fringe Benefit Tax it had to pay. Would it be a windfall for
the company at the cost of the employee?

The valuation of perquisite should have the same exemptions for benefits as
were prescribed under FBT on the employer so that employees are not taxed
in more burdensome manner. These include valuation in respect of prescribed
electronic meal cards, prepaid vouchers, and meals, crèches, other
statutory obligations etc. However, there could still be tax incidence on
account of motor car, driver, club membership, credit cards and a host of
other items. Taking the sum total of the impact, the employee is likely to
get burden with more tax, and this could completely override the tax
advantage that the individual employee got from the budget, unless the
current exemptions are continued and valuation of benefits is done to
ensure no more burden on employees as was in pre FBT regime.

In conclusion, we see that the employees are likely to face more tax burden
from the transfer of tax on Fringe Benefits to them. It is hoped that the
government would be mindful of the impact and align the rules of valuation
with objective of at least maintaining the tax on benefits no more than pre
FBT scenario. While framing the rules it should be borne in mind that the
last rules for valuation of perquisites were defined in 2001 and inflation
has been running high since then. The need to leave sufficient money in the
hands of the employees to increase spending power is the need of the hour.
-END-


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Budget Reflections

A Disappointing Budget
for

 Small Scale and Micro Industries

The Union Budget 2009-2010 came as a total disappointment for the Micro and Small Scale industries as there is no special packages given for this sector which are severely affected due to economic downturn.

There is no mention about the reduction in interest rates for micro & SSIs on par with the agriculture eventhough  MSEs are the largest employment provider and contributor to GDP.

Rs.4000 crore allocated to SIDBI for refinancing MSMEs was already announced by
the Prime Minister in the relief package and it has not actually reached the needy.

The abolition of Fringe Benefit Tax comes and service tax relief for exporters will give fillip to this sector. 

The allocation of Rs.2080 crores for power sector is not sufficient and not realistic since most of the states are suffering due to acute power shortage.

Though It was decided by the Government of India to reduce the Central Sales Tax from 2% to 1% from April 1, 2009, it was not implemented. We request that the Government of India should reconsider for reduction of CST to 1 % with retrospective effect.

 

K. GOPALAKRISHNAN
Hon. General Secretary - TANSTIA-
Tamilnadu Small and Tiny Inds. Association
No.10, G.S.T. Road, Guindy, Chennai - 600 032.
Ph : 044-22501302, 22500939, Fax : 044-22501890
Email : tanstiaorg@gmail.com, tanstiaassn@yahoo.co.in
Website : www.tanstia.org.in

Budget Reactions- Mr. Harpal Singh (Chairman- Impact Group, Chairman- CII Northern Region, Mentor & Chairman- Emiritus Fortis Healthcare Limited)

 

Hi!

 

Please find attached herewith my mail and given below the budget reactions from Mr. Harpal Singh (Chairman- Impact Group, Chairman- CII Northern Region, Mentor & Chairman- Emiritus Fortis Healthcare Limited)

 

 

 

 

 

Thanks & Regards

 

Archana Surya
Senior Associate
Lexicon Public Relations & Corporate Consultants Limited.
(A Fleishman-Hillard International Communications Affiliate)
14-Community Centre, East of Kailash
New Delhi-110065

 

 

Budget Reaction

A balanced Budget

 

The Budget this year appears to be a balanced one with the thrust on inclusive growth. Government has decided to keep the fiscal measures going for stimulating the economy. The Plan expenditure is higher by Rs 40,000 crore than what was mentioned in the interim Budget earlier. If we are lucky and have adequate monsoon, the Government's efforts may yield good harvest for the economy. The challenge for the Government would be to contain the Fiscal deficit which is set to reach 6.8% of GDP (around Rs 4 lakh crore) and return to the provisions of FRBM as soon as possible.

 

Allocations and spending in the rural economy through initiatives like enhanced allocation to NREGS, Bharat Nirman & PMGSY will not only work for the upliftment of the rural areas but will also help in the overall GDP growth of the country as the rural economy is unaffected by the global crisis. Increased spending on infrastructure will ensure liquidity in the market without increasing the fiscal deficit of the Government considerably.

 

On taxation front, the Government has done a commendable job by not increasing taxes despite such rigid fiscal conditions. Extension of Sunset clause is a welcome step considering IT Service industry is the key to India's GDP.

 

Extension of weighted deduction on R&D expenses in manufacturing will help in promoting innovation. Reduction in customs duty on various consumer goods will boost private consumption.

 

Increase in MAT, no increase in IT exemption for home loan interest and no headway on the divestment front were some of the disappointments. However, one cannot get everything from the Budget. There are constraints which the government has to deal with and given the current circumstances, this is a decent Budget.

 

To spur private participation in healthcare, the sector needed infrastructure status. Tax cut on import duties of medical equipments will allow healthcare institutions to access state-of-the-art med equipments.

 

Capacity expansion of all levels of education with a focus on faculty production and training is a welcome step. Infrastructure expansion in Higher Education will lead to increased enrollment rates which had been dwindling alarmingly. The focus on employment oriented vocational education will also boost enrollments in higher education institutions.

 

 

 

 

 

 

Re: Thanks Re: Budget reactions from Mr. Rohan Shah, Managing Partner, Economic Laws Practice

14^th July 2009

 

Dear Murali Sir,

 

Thank you very much for carrying Mr. Rohan Shah, Managing Partner,ELP  budget reactions.

 

More Power to your pen!

 

Regards,

 

Vivek Nair / Mohan Rajan

Paradigm Shift PR

Mumbai

Tel: 22813797 / 98

Cell: 9833115116 / 9820030671

 

2009/7/10 Murali D <budget2009reactions@gmail.com>

Thanks for your quick 'reactions'!

Warm regards
D. Murali
http://Budget2009Reactions.blogspot.com/

--
Paradigm Shift Public Relations
10 Mistry Chambers, Ground Floor
Next to Strand Cinema
Mumbai - 400005
Tel: +91 - 22 - 22813797 / 98

My views on Budget

Dear Editor

 

Giving below my comments on the budget.

I am also sending my photograph and my brief profile herewith as requested.

 

 

 

 

 

The budget presented by Mr. Mukherjee for sure was not the one to keep the reformers happy, rather it was shaped clearly on the political agenda of the Congress party. While it emphasized on the outlay for the rural India, which sector helped the Congress party to come to power, it clearly gave an impression that this government has already started laying a foundation for the preparation for the 2014 elections.

 

Interestingly the recently released economic survey 2008-09 has been largely ignored, in the sense that the budget totally missed on the divestment target, FDI in defense and insurance and many other reforms. In that sense the budget lacked a clear strategy and vision, which if attained , could have sent clear signals to the investors, corporates and the outside world. We would have definitely preferred to see the finance minister giving clear directive with his actions for propelling India into the 8 to 9% GDP growth over the next 5 years.

 

While abolition of surcharge and increase in taxable limits for the individuals is a welcome move, it will hardly help in bringing the money  into consumption and thereby helping stimulate the demand. The increase should have been much higher so as to divert some money towards spending on consumables by individuals.

 

For most of the industries, this budget was a non-event as there were no major changes or policy announcements, which was quite disappointing especially in the backdrop of the huge expectations built up in pre-budget period after the election results.

 

Big increase in the expenditure side largely with huge soaps on rural development and social schemes, although a welcome feature, is going to bring in lot of strain on the economy and the tax payers. It would be a real challenge for the finance minister to manage the huge fiscal deficit. Substantially higher borrowings are likely to increase the interest rates, which will be a dampener for the business sector.

 

Although the finance minister's intention of bridging the gap between "Bharat" and "India" is understandable, it certainly should not be at the cost of growth, especially when competing nations like China have gone several miles ahead and though quite late, we need to stand up and start running.

 

 

 

regards

Gurudas Aras Director

A.T.E. ENTERPRISES PRIVATE LIMITED Bhagwati House, A - 19,CTS No. 689, Veera Desai Road,Andheri (West), Mumbai - 400 053, India T  :  +91-22-6676 6100  Ext : 112   M :  +91-98200 39244    F :  +91-22-2673 2463  W :  www.ateindia.com    |  www.ategroup.com

 

Tax on Income from Dividend

Dear
Sir,

Sub: Union Budget 2009 – Tax on dividend distributed by companies –
Inclusion of dividend as income and deduction of tax in the hands of
shareholders

The Finance Minister has not touched the 'income from Dividend', where there is scope augmenting income as well as for bringing in 'equity in taxation'. As the law stands today the
shareholder who is getting dividend of Rs. 1 Crore and his counterpart who is
getting Rs. 10,000/- are treated alike i.e. the dividend is subjected to tax in
company's hand (in the form of dividend distribution tax) at the same
percentage and the dividend income is exempt in their hands. Instead if the
dividend income is added with other incomes and the tax suffered i.e. the tax
paid on the dividend distributed is allowed as rebate/deduction form the tax
payable, it will have equity in the sense that who earns more will pay more and
who has no other income will pay less tax or even can get refund if his/her
income is less than the maximum non-taxable taxable limit. One of the 'canons
of taxation' is equity and on that principle the tax payable will be more for
who earns more and will be less for those who earns less because those who are
in higher bracket will have to pay additional tax than the dividend
distribution tax of 15% (plus surcharge of 10% and education cess of 2% and
secondary and higher education cess of 1%) whereas who earns less will pay less
@10%(plus usual cesses) and those whose income is less than the maximum
non-taxable limit will get refund. Will the Finance Minister will look into the
matter and see that the act is amended accordingly to help those who are in the
lower income bracket.

Yours faithfully,
L. Madhav Muthiah, B.Com.
Manager, Sree Valampuri Agencies,

153G, North Veli Street,
Madurai 625001.
Mobile: 9894718741

scan file

RE: Thanks Re: Budget Reaction - Alroy Lobo, Kotak AMC

Sincere apologies for this but had sent it across to the Mumbai bureau.
Guess it got lost in translation amongst the deluge of reactions....

Warm Regards,
Roshan.M.Negi
Associate
Genesis Burson-Marsteller
THE HOLMES REPORT, 2008 CONSULTANCY OF THE YEAR
1st floor Elegant House | Raghuvanshi Mill Compound | Lower Parel | |
Mumbai 400 013 , Maharashtra, India | Website: www.genesisbm.in
Email: roshan.negi@bm.com|
Tel PBX: + ( 91 22 2491 0783 | Ext : 266 |Mob : +91 98201 34864 | Fax:
+ 91 22 24911788
Disclaimer: The information in this email is confidential and may be
legally privileged. It is intended solely for the addressee and others
authorised to receive it. If you are not the intended recipient, any
disclosure, copying, distribution or action taken in reliance on its
contents is prohibited and may be unlawful.

-----Original Message-----
From: Murali D [mailto:budget2009reactions@gmail.com]
Sent: Monday, July 13, 2009 3:19 PM
To: Roshan Negi
Subject: Thanks Re: Budget Reaction - Alroy Lobo, Kotak AMC

Thanks for your quick 'reactions'!

Warm regards
D. Murali
http://Budget2009Reactions.blogspot.com/

Budget Reaction - Alroy Lobo, Kotak AMC

Hi,

 

Please find below a quote from Mr. Alroy Lobo - Chief Strategist and Global Head, Equities Asset Management, Kotak AMC on the Union Budget 2009:

 

“It is a realistic budget and has an expenditure-led fiscal stimulus which is positive for domestic demand and medium term growth. The budget is also largely tax neutral which is positive for both growth and inflation expectations. The budget has worked with a nominal GDP growth assumption of 10% which is fair given the slow start to monsoons this fiscal year. The equity and bond markets have reacted to a high fiscal deficit as it has implications for monetary policy and the interest rate environment. However, if growth does pick up on the back of the fiscal and monetary stimuli, and divestments (no major revenue assumptions made in budget) materialize, it could be positive for India’s fiscal position.”

 

Also find attached his photograph for your reference.

 

Please feel free to get in touch if you need anything more.

 

 

 

Warm Regards,

Roshan.M.Negi

Associate

Genesis Burson-Marsteller           

THE HOLMES REPORT, 2008 CONSULTANCY OF THE YEAR

1^st floor Elegant House | Raghuvanshi Mill Compound | Lower Parel | | Mumbai 400 013 , Maharashtra, India | Website: www.genesisbm.in

Email: roshan.negi@bm.com| 

Tel PBX: + ( 91 22 2491 0783 | Ext : 266 |Mob : +91 98201 34864  | Fax: + 91 22 24911788 

Disclaimer: The information in this email is confidential and may be legally privileged. It is intended solely for the addressee and others authorised to receive it. If you are not the intended recipient, any disclosure, copying, distribution or action taken in reliance on its contents is prohibited and may be unlawful.

 

Budget 2009

Pls find attached this comments.

300 word Article from Mr. Moon B. Shin, LG Electronics

Dear Sir,

 

Also find attached a 300 words write up on Behalf of Mr. Moon B. Shin, MD, LG Electronics on post budget reactions.

 

Thanks and regards,

Vineet Sharma
Hanmer MS&L|Member of PUBLICIS GROUPE)
E-228, Ground floor, East of Kailash New Delhi – 110065
M: +91 9999870197 B: + 91-11-46517700
F: +91-11-46517799
E-mail: vineet@hanmermsl.com
WebSite: www.hanmergroup.com

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Post budget comments from Mr. Moon B Shin, Managing Director , L G Electronics

 

 

Budget 2009-2010

 

Moon B Shin

Managing Director, LG Electronics India

 

 

The Union Budget 2009-10 is a very progressive budget in terms of focus on public- private sector partnership & infrastructure development.

 

The government has stood by its plans in the positive development of the overall economy with a thrust on the rural development.  

 

E     The Announcement of Goods and Service Tax (GST) with effect from 01.04.2010 will bring about a phase change on the tax equitably between manufacturing and services and will accelerate Economic Growth and Competitiveness.

 

E     The decrease in custom duty on LCD Panels from 10% to 5% will enhance market for LCD TVs.

 

E     On direct tax side, key announcement is the abolishment of Fringe benefit Tax. It will lead to decrease in operational cost which will further impact pricing of the products positively.

 

E     Allowability of expenditure on In House R&D @ 150% to all manufacturing entities will encourage the technology development in India and will reduce the import of know-how.

 

E     The extension of tax holiday to export oriented units will boost exports and economic growth.

 

Overall, I foresee an improvement in the macro-economic condition of the country as this union budget proposes to boost agriculture, rural industry, education & infrastructure

 

 

Thanks and regards,

Vineet Sharma
Hanmer MS&L|Member of PUBLICIS GROUPE)
E-228, Ground floor, East of Kailash New Delhi – 110065
M: +91 9999870197 B: + 91-11-46517700
F: +91-11-46517799
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WebSite: www.hanmergroup.com

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Post Budget Reaction for Information Technology Industry

Post Budget Reaction for Information Technology Industry

Writer: Mr. C R Vinay, Co-Founder, Chairman & Managing Director, Customer Centria

In the post recession period there has been a phenomenal change in the fortunes as well as the working styles of the different industries. The economic slowdown was like a jolt unexpectedly forcing the companies to do a serious introspection on their policies. With layoff notices, unpaid leave and 'on the bench' becoming the most commonly floating words around, the Indian workforce tasted recession, the worst import of the West. Not only were the industries forced to cut on costs, they were also asked to justify their spending and revenues and to add value to every expenditure they made.

One of the worst hit industries in the aftermath of recession was the IT industry of India. Once the blue-eyed industry of the west, especially US, the Indian IT companies were an instant hit due to their large talent pool of English speaking workers. After experiencing the dot com downfall, this is the second time the US is facing a decline of revenues in the IT sector. The recession this time might not be similar to the dot com bubble burst of the 90s but the impact is more or less the same. There are confirmed reports that IT budgets in a number of industries in the US and UK, have been nearly halved. After project cancellations and lay-offs, a number of Indian IT workers in the US were asked to leave. The situation has been aggravated further by southward movement in the billing rates, a longer payment period cycle and increased competition from other low cost destinations.

With a much more stable UPA back in its second innings, India's Industry was hopeful that this budget would rev up the industry and bring back its former glory. The IT/ITes industry that contributes around 6% to the national GDP has high expectations from the Union Budget 2009. The demands were few and fair.

• The demand of the industry was to extend the tax holiday by another decade as the growth is on a steep decline in the last one year due to recession globally. The recession and the lack of tax subsidy are resulting in businesses to layoff teams. There is a need for a stable policy regime for the IT hardware industry and for growth-oriented measures to boost domestic IT consumption. The STPI extension in this regard has come as huge relief to the IT sector. Even though the tax-holiday has been extended only for a year, it still will be able to give the recession hit industry support and stamina to revive itself.
• Tax analysts feel that even though the tax savings from this holiday might not be able to make up for the huge losses      these businesses have suffered globally, it still is going to be beneficial. Extension of the 10A/10B extension will surely provide a breather. This is particularly important for SMEs to facilitate their continued growth, which might not have the right resources to move into SEZs. This will also facilitate move into Tier 2 and 3 cities. The extension of this scheme is an important and necessary step to ensure continued growth for this sector.
• For the employees, abolition of fringe benefit tax (FBT) will make ESOPs (employee stock ownership plan) more attractive. Transfer pricing was a cause for concern. The IT industry has been one of the biggest contributors to the FBT tax, due to its high expenditure in terms of traveling, hospitality and ESOPs.
• There was also a much-required need for a new tax structure on the e-commerce businesses. The Information Technology Act, 2000, which is the first legislation to deal with electronic commerce, is silent on taxation. Substantial amount of state revenue, which is generated through direct and indirect taxes, is lost when Internet transactions remain untaxed. The removal of FBT for the industry and employees to emphasis on key e-governance projects has come as a major breakthrough for the sector of e- governance. It is heartening to see investment in key e-governance projects with an emphasis on important initiatives like unique ID programme. The excise duty exemption on packaged software is also a positive step.
• One of the main reasons behind the success of India's IT sector over the years has indeed been the tax holiday which has helped these firms plough back their earnings and fund their growth, especially given the fact that the banks have been loath to funding IT companies. Primarily, the sector had been asking the Finance Ministry to clear the mist around tax anomalies. This budget has helped cleared a lot of confusion on the multiplicity of taxes on packaged software.

Brief profile of Mr. C R Vinay

Co-Founder, Chairman & Managing Director

Vinay is an MBA in Marketing and Information systems from a premier institute in India with more than 13 years of experience in Advertising, Marketing and Technology. His vast global experience ranges from providing Marketing and Advertising consulting to leading companies in India to Analytical CRM and Analytical Marketing consulting to leading enterprises globally. His penchant for Customer Management coupled with his strong background of technology-driven Marketing focusing on driving a globally competent Customer Management company. He is driven by the belief that every enterprise needs to get Customer Centric in order to maximize all round value. 

Thanks and Regards.

Thank you !

Dear Sir,

 

Many thanks for carrying budget feedback of Mr. Sunil Goel, GlobalHunt India in your publication.

 

Thanks & Regards,

 

Kavita Kapoor

Asst. Manager (Corporate Communications)

 

GlobalHunt India Pvt Ltd. E 45/6, Okhla Phase-II, New Delhi – 110020   Email                     kavita@globalhunt.in Website                 http://www.globalhunt.in   Board    +91 11- 46547700, Direct    +91 11- 46547775, GSM       +91 9871666544

 

 

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Budget 2009

Dear Sir ,

 

Pls find below my comments on the Subject.

 

 

According to the budget proposals upper slab tax payers get 2.65 % of tax savings (taxable income of 20 lakhs holder ). Whereas the bottom level tax payer's (ie taxable income of 5 lakhs holders) eligibility is only 0.20% of benefits. Why this disparity when the Constitution of India granted equality ( ie equal treatment to all citizens of India ) all are equal before the law but not in budget proposals. Is it justifiable? Is there any exemptions for the bottom level taxpayers to deny this right? Hope law makers will look into this. Allowing this right to the lower level taxpayers , purchasing power will automatically increase in turn Indian economy will also improve .President of USA , has also agreed to implement equality in  income tax in the election manifesto .  

 

Thanking You.

P.Muniappan.

(Senior Citizen)

Y1/39, SAF Games Village,

Koyambedu,

Chennai. - 600 107.

 

Budget Reactions

Sir

 

Congrats and Hats off to FM for presenting a courageous Budget, for deviating from Traditional & Orthodox Budget itenaries, where every common man was looking for , how cooking gas fared and Corporates for tax cut on budget day. As only needs can be satisfied and not wishes. So Budget surprised each and everyone who was expecting to satisfy their wishes.

 

Spending on Rural and Social infrastructure & Allocation for Agriculture is praise worthy. As majority of our population lives in rural areas, Below Poverty Line and depends on Agriculture for livelihood. Let this satisfy our consumption and the finance run through the veins of Nation tru the Rural areas and Agriculture.

 

First the Fractured Economy need to be rectified by stimulus of such steroids. Then only strengthening could be possible. It's a very Bold step taken by the FM, presenting the Courageous Budget as a tailor fit, for the growth of India Inc. And growth is where the courage is. Let this be the strong base on which the future Budget builds up a new, POWER-ful & strong India. And be a example to world economy that we are not prone to, for their mistakes. Let every Indian be proud for such step taken by the Finance Minister and feel strongly Mera Bharat Mahaan always.

 

truly

U. Ramakanth Pai,

Manager ( Wholesale Division )

Govind Furnishings Pvt. Ltd.

Kochi.

Mobilize Resources

From

     T.V.  JAYAPRAKASH

     "BHAVANA" 

     NEAR UMMINI SCHOOL

     DHONI  P.O.

     PALAKKAD  - 678 009

     KERALA.

To

     The Editor

     The Hindu BUSINESS LINE.     

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                     BUDGET LINE

Mobilization of resources in the service of the common good

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     The provision of the three focused fiscal stimulus packages in the form of tax relief, increased expenditure on public projects and the monetary easing and liquidity enhancing measures taken by the RBI could counter the negative fall out of the global slowdown on the Indian economy.  Enhanced allocation to NHAI for the NHDP and allocation for railways, eradication of poverty and female illiteracy is a healthy trend.  Housing, amenities and employment to the urban masses could be made available through schemes under JNNURM and RAY.   APDRP could bring thrust in the power sector.  There is scope for improvement in the condition of the farmers and children.  Irrigation facilities could be improved through AIBP and agriculture developed through RKVY.      

     Decision to open one central university in each uncovered state is an approach that could be welcomed warmly. 

     The attempt to attain perceptible improvement in passenger amenities, cleanliness, quality of catering, safety & security and punctuality by the railways without increasing passenger fares and freight tariffs also is laudable.  

     Mahatma Gandhi had said, "Democracy is the art and science of mobilizing the entire physical, economic and spiritual resources of various sections of the people in the service of the common good of all".

     T.V.  JAYAPRAKASH

     MA (Eco), MA (Socio), MCJ

     Vice Principal, MES Women's College,  PALAKKAD

     Former Research Officer, Directorate of Economics & Statistics, Kerala.

BUDGET LINE

---------- Forwarded message ----------
From: alok sharan <absharan24@gmail.com>
Date: Sun, Jul 12, 2009 at 9:37 PM
Subject: Fwd: BUDGET LINE (revised)
To: budget2009reactions@gmail.com

---------- Forwarded message ----------
From: alok sharan <absharan24@gmail.com>
Date: Sun, Jul 12, 2009 at 2:34 PM
Subject: BUDGET LINE
To: budget2009reactions@gmail.com

COMMENDABLE BUDGET : REQUIRE FINE TUNING IN THE SPENDING

 

Emphasis of the Finance Minister on Aam Aadmi (Aurat included), inclusive growth, infrastructure and spending on other popular schemes is commendable. The wish to achieve the inclusive growth by quantum increase in spending by the government is based on the approach of trickle down effect.

 

However, considering the long and complicated pipe lines of systemic procedures perforated with ubiquitous corruption of every hue and cries, mere increase in the allocation for these scheme will add little to the target group. An analogy of this is the poor water management system in the country where all the pouring in the cities ultimately goes in the drain leaving the cities underneath as dry as before. We must understand that just like proper rain harvesting system for optimal use of the rain water (precious resources, given little importance till date), proper delivery mechanism (read overhauling) is required to get the desired benefit out of the increase in the outlay in the budget at the cost of burgeoning fiscal deficit.

 

The other important theory a la Keynesian is providing stimulus by huge spending by the government on just anything. It appears that a consensus is emerging across the board to increase the government spending on infrastructure. However, the same should be fine tuned in the Indian context.  To revive the economy and to maintain the growth, we need to increase our demand across the various products segment first and then the supply side would be taken care by the industry and entrepreneurs without much help from the government in terms of excise and or other similar measures. On the contrary, by spending huge sum of money on infrastructure e.g. ports, airports, flyovers etc. we are increasing the capacities and facilitating the manufacturers, traders and exporters without any matching increase in the demands except related with the infrastructure industries.

 

To address these anomalies, spending in the areas with a long term view to create wealth for the common men and women e.g. housing projects, up-gradation of wasteland, smaller irrigation projects, afforestation in tribal areas, land reforms with the help of industry minus the mafia, is required. It is also necessary to provide the educated unemployed and poor people various respectable opportunities to earn their livelihoods otherwise left out from NREGA. The major beneficiaries from these would be the people forming the base of the social pyramid. On one hand it will help the industry and on the other hand it will equally work as various welfare schemes launched by the government. These measures if taken in the right earnest will not only provide the necessary inclusive growth and increase in the demands but also push the economy of the country into higher growth trajectory.    

 

 

Alok Sharan

New Delhi

 

(Views expressed herein is personal in nature and nothing to do with the orgainsation)