Union Budget 2010

5 % custom duty on crude petroleum restored

Finance Minister Pranab Mukerjee introduce the finance bill 2010 after getting "yes" from majority

KEY DECISION;

PETROL PRICES WILL GO UP - INCREASE

GST and Direct Tax code by April 2011



FISCAL deficit to be reduced

Online News agencies to attract Service Tax

Accredited news audiences exempted from Service tax

If I am to give a quick reaction to the budget proposals pending a detailed study, I must say it has been on predictable lines so far. The rollback of stimulii package is now real with restoration of rate of excise duty. There is very little to cheer about on the personal tax front. Thrust on infrustructural development and focus social sector are key features. Similarly proposed disinvestment have brought back life into bourses. I would add more tonight!

Hi chinmoymukherjee ,

I guess Agricultural Sector was not given enough concentration

I do agree as it looks prima facie excepting a slight rise in the subvention rate for soft loans to farmers. Similarly attempt to provide social security to NREGA workers is a welcome step. Let me go through the proposals in depth.

As You both said agriculture was not concentrated much. Also the petrol rise by 1/- is really a bad news taking into consideration the petrol prices...

What about your views on the measures to manage fiscal deficit?

@Anu

The price effected on petroleum products was inevitable as the oil marketing companies are bleeding pretty badly.Let us hope as the budget speech indicates that the Parikh committee recommendations would be implemented. We need to have differential rates for different users. As for the Finance Minister he was under pressure of containing inflation as well as to keep the growth momentum. Thus his decision to rollback rate of excise and customs duty under indirect tax and raising Minimum Alternate Tax to 18% has to be seen in the light of the need to control fiscal deficits. However promise of further liberalization of Foreign Direct Investments which deserves a detailed study has the share market going upbeat.Disinvestment in some Navaratnas and Mini Navarantnas have to be seen in the context of controlling deficits.On the face of it, The Finance Minister has tried to do a tight-rope walk!

Fiscal Deficit is nothing but the difference between the money spent by the Government and Money earned.You can check the link below for more information.

What is Fiscal Deficit and How it is calculated?

So whenever there is a Fiscal deficit, it is understood that Government needs to borrow money for the budget. Steps must be taken to overcome this. May be high tax for very rich people and Companies. Organizing international events ,which tend to earn more revenue. For example, when IPL took place in India, the Indian Government got Rs. 93 cores s Tax.

So these are some suggestions and I am not sure, it will be practically implemented at full stretch.

Thanks to Raaghavan krishnamurthy, chinmoymukherjee and others who supported me and gave your full support to have a clean update on budget and Thanks to all the senior members

The budget is on expected lines. There is nothing for common man. the income tax rates reduction benefits only the richer people. Petrol rise will affect all. similarly, more services have been brought in tax net. This will also boost prices. Increase of Central Excise duty by 2% will also raise prices. Apparently, agriculture sector has not been given due attention. Howecver it is heartening that Agricultural machinery, Tractor Trolley are being made cheaper.

I am not able to analyse the budget critically.But increasing the tax limit and reducing the rates will definitely help government employees.

At the same time many feels that this is a rich man's budget. Your thought about this sir?

Very good effort and hats off to you Raaghavan Krishnamurthy and Deivigan....

Also for everyone who supported this thread...

@Raghaav

I do not think it would be appropriate to term it as rich man's budget.As I mentioned in my pre-budget article "for whom the budget tolls" that compulsions of inflationary pressures and the need to keep growth momentum would weigh heavily on the Finance Minister's mind.To that extent I was successful.If you remember some cuts in the excise duty were effected to meet recession which have been partially withdrawn. The corporate sector has reasons to feel unhappy for the increase in the rate of MAT but at the same time a small reduction in the rate of surcharge is some kind of consolation.Owners of small business have a good news in the form of hike in the ceiling of turnover of 60 lakhs which would spare them from compulsory audit. Taxpayers in general have a good news in the form of relief from investments in infrastructural bonds to the tune of Rs. 20,000 which is in addtion to Rs 1,00,000 under section 80C. On the whole I would prefer to call it a "balanced budget" and considering the difficult times in which he was called upon to perform his duty, the Finance Minister has done a reasonably good job.

Ya chinmoymukherjee , I can understand. Your points are really valid

Hi Raghaav!

Thanks a lot for making it a successful excercise.This thread has attracted more than a hundred views! What do you think?