Control on Expenditure for Positive Economic Growth!

P. Chidambaram was well aware of Union Budget 2012 being not up to expectations. With elections round the corner and with the country exhibiting decelerating economic growth, the finance minister is expected this time to present a positive Union Budget 2013 with special emphasis on growth.

Yes, Union Budget 2013 can fuel the economy; P. Chidambaram should give the big push now. Special emphasis should be laid on trimming expenditure. With GDP growth going lower than 5.3 percent and with the urgent need to implement measures to control fiscal deficit, restraint on expenditure is a must. Because if expenditure, which is at 14 percent at present, is not trimmed, taxation will see a rise! And changing income tax rates will not only dampen foreign investor confidence but also affect the industry and common man alike. Though GST can boost revenues, its implementation is unfeasible for roughly another two years.

What the finance minister can do is taxing conspicuous consumption, reduce spending on subsidies, and follow more measures.

The above post is based on expert opinion by D H Pai Panandiker, President, RPG Foundation.
You can read the complete article here -
http://blogs.reuters.com/india-expertzone/2013/01/30/budget-2013-should-trim-expenditure/

What the IT sector wants from Union Budget 2013?

What NASSCOM has portrayed about IT as a booming industry despite global economic volatility is well attested by the positive performance of the many IT companies. IT contributes 7.5 percent of India’s GDP besides sustaining the livelihoods of 11.7 million plus Indians.

So, what does the IT industry want from the Union Budget 2013? Here are key expectations:
·        Resolving of existing hassles over tax (direct and indirect) issues
·        Implementation of fair amendments in GAAR
·        Discontinuation or reduction of Minimum Alternate Tax (MAT) levied on SEZs
·        Clarity on transfer pricing, removing confusion regarding taxation of multiple companies of the same group.

The spate of reforms introduced by the government since September has moderately contributed towards economic boost. The IT industry likewise expects Union Budget 2013 to focus on reformative measures the big way. It is then that this sector will earn global acclaim – the evolution from BPO (business process outsourcing) to BPM (business process management).

The above post is based on expert opinion by Keshav R. Murugesh,CEO and member Board of Directors of WNS Global Services. You can read the complete article here -
http://blogs.reuters.com/india-expertzone/2013/02/07/budget-2013-wishlist-it-industry-expects-policy-changes/