Friday, March 8, 2013

Mixed criticisms for Budget 2013

Had not welfare spending given some importance in Budget 2013 (though not the big way), extreme poverty could not be tackled. But then overall, Union Budget 2013 is practical! An unchanged sovereign rating is another outcome of the budget.

No wonder structural imbalances cause macro-economic challenges and the budget hardly addresses them. It is rightly conjectured Mauritius tax treaty could have been avoided, especially when statistics prove that 40 percent of foreign in-flows come through this path.

Measures like additional tax break for first home owners, implementation of the Goods and Services Tax, higher govt. borrowing, are indeed appreciable not to mention debt fund investments (for a year). The common man’s struggle against inflation and negative real return on investments and income seem to continue. ‘Taxing on the rich’ is no big solution! The Direct Taxes Code can only deliver some change.

The big challenge for Chidambaram now remains of meeting the 4.8 percent of GDP fiscal deficit target next fiscal. You can read the complete article here

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