Friday, February 15, 2013

Budget 2013 - Creating the Lost Interest!

The same routine measures, policy paralysis, non-innovative and non-inventive inclusions – for over a decade these are what the budget delved on, thus losing its wow factor. But Union Budget 2013 is generating some interest!

Besides dealing with fiscal and current account, P. Chidambaram has to make the citizens happy (thanks to the approaching elections!). For bringing down deficit to 3 percent of GDP in five years, as projected, Union Budget 2013 should focus on the following:

· Cut down on plan expenditure sensibly
· Reduce subsidy using Aadhaar
· Introduce welfare schemes for the poor
· Bring more service sunder tax net
· Rationalize the indirect tax structure
· Border-less movement of products within India (via GST implementation)
· Implement tax measures to raise the tax-to-GDP ratio
· Encourage household savings
· Effectively implement Rajiv Gandhi Equity Savings Scheme
· Accelerate momentum of exports
· Ease credit norms
· Remove infrastructure bottlenecks
· Encourage FII and FDI fund flows
· Limit borrowing and wasteful expenditure
· Control of inflation, and more.
The above post is based on expert opinion by Rajagopal is the Head Advisory and a member of the investment committee at Kotak Mahindra (UK) Ltd. You can read the complete article here -

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