‘This Budget will leave more money with the poor, increase purchasing power’

Font Size

Print

Feedback

Email

Discuss

Related Articles

Column : Dialling into tax troubleColumn : A post-recession exit strategy -IColumn : In crisis, wear your balance sheetColumn : The problem with spending

: Steps like fertilizer subsidy, increased credit for farmers, reduction in custom duty as well as excise exemption for biofuels, abolition of fringe benefit tax and commodity transaction tax are very good steps taken by the finance minister. The incentive to set up cold chain is going to reduce agricultural waste and increase productivity is therefore a very good move indeed.

Rural employment guarantee will help boost rural economy and is going to make the aam admi happy. With more money in the hands of the rural people, purchasing power is expected to go up. Reduction in personal taxation is expected to help the urban economy as well.

Disinvestment of PSU is a good idea because it will lead to more private participation in this segment. However, he did not specify the way forward for disinvestment. But it is clearly a good move. The boost in the social sector is really commendable provided the delivery mechanism is appropriate.

There may not be anything specific for FMCG now, but one should not forget that in the December stimulus package some excise benefit was announced and no roll back was announced in the present budget which is really good. The same holds for the auto industry. All sectors cannot however get incentives all the time.

The finance ministry clearly had to make a choice between managing fiscal deficit and optimising economic growth. He has gone for tackling current problems through the Budget.