A thumbs up to the finance minister - A budget for Aam aadmi.
A fine balance between economic growth and curtailing govt’s fiscal deficit.
The budget KEEPS IN MIND its goal of containing the fiscal deficit to 5.5%.
The rollback of 2% in excise duty, will not be inflationary but aid in growth in the long run.
46% of plan allocation for infrastructure development– a very prudent step to take the country forward.
Deduction on R&D raised to 200% - positive step to aid development
15.8% increase in outlay for education is one of the best steps in this budget that will propel India forward at a much faster pace.
Crop loan at 5% interest to farmers – a relief to poor.
Mere 4% hike in defence budget – excellent step, exudes confidence in our ability to talk to our neighbours, and on faith of obtaining their goodwill. If all our neighbours took the cue and gradually reduced defence expenditure, it will help the entire region achieve faster growth.
GST delayed to 2011 – although it will cause delay, the time will give scope for proper planning
Higher GDP and inclusive growth will happen as result of the positive steps taken.
Service tax retained at 10% - a move in positive direction, will aid growth.
Silver, gold import duty raised – good step of identifying income for economy without taxing the Aam aadmi
Excise duty cut on CFL. Excellent step to reduce power consumption, as also help in reducing our carbon footprint.
Clean energy cess of Rs.50 per tonne of coal produced in India – will help in reducing our carbon footprint
UIDAI of Nandan Nilekani is allocated 1900 crore – a real pointer at seriousness of government for the project.
The flagship rural employment scheme (NREGS) allocated 2.5% more than last year – a very good step in right direction
Bharat Nirman allocated 6% over last year – an excellent growth oriented step.
IT slabs broadened – definitely a major step aimed at infusing liquidity into the market. The extra income will go into the market as well as into savings, overall a step aimed at long term growth.
Further investment incentive for 20,000/- in infrastructure bonds – a commendable step at channeling fund for growth.
Social sector spending increased to 1.37 lakh crore – good step, will aid progress
31000 crore for primary education – good step that allocates resource for a much needed sector.
66100 crore for rural development – excellent step to aid progress of nation. Rural growth is very important for containing fiscal deficit within the aimed limits.
5400 crore for urban development – good allocation. Urban development can always find innovative ways of raising resources for further funds, if required.
1200 crore for drought mitigation in Bundelkhand – a positive step which is aimed at long growth.
Sales in state firms to fetch 40000 crore – this move will be a step in right direction, as private participation will infuse efficiency into the many loss making firms.
Telecom license auctions to yield 35000 crore – a move at getting the money from right sources/
Concessional duty of 4% for solar powered rickshaw developed by CSIR.
Concession on medical eqpt for hospitals retained – good step. Further means should be there that the hospitals offer reduced charges for services using these equipment to Aam aadmi, else only the hospital’s coffers will overflow.
All the villages with 2000+ population to get banking facilities by 2012. – a good step to help Aam aadmi.
Propose to double allocation for Ganga cleanup mission – a very good step. Desilting of rivers must be given more priority, to aid growth of the agriculture sector, a major requirement for exceeding growth targets.
The move to include subsidies into physical accounting will help in better accounting practice and more transparency.
Toys fully exempt from central excise duty – no idea how this will help economy.
16500 crore for railways – not a surprising move, considering the populist rail budget.
Customs duty on crude back to 5% - was not necessary, instead the benefits from oil pool could have been reduced. Increase in petrol and diesel prices will increase inflation in short term.
Concessional customs duty @5% for cable operators – wrong step, we are talking of D2H, to put an end to the geographical monopolies and musclepower of cable operators – this sop was unnecessary.
The ill preparedness of the administration in anticipating the food shortage reflects very badly on the govt. The double digit food inflation is THE major cause of worry.
