Pranab’s Powerless Budget to Remain in Power !….Budget Speech is yet going on….over 1 hr 45 min….he remains standing while Sensex sinks from positive (up 100 points) to negative territory from yesterday to current 17600 levels
Fill in the Blank by Choosing the correct Option
Pranab delivers a ________ less Union Budget 2012
- All of the above
Answer is 7….this was his 7th Budget and it came without any 7 year itch !
Update just five minutes later…..
I hour 50 minutes and Pranab ends his Budget Speech at 12.50 pm….as I had blogged yesterday I did not expect him to announce any path breaking or reformist anoouncements….I’m so sure of this mindset of a 75 + year old….Old School….Protectionist…Intend on Politicians,Parliamentarians and Bureaucrats retaining Control of Our Indian Economy which is really trying to break free to tap the great potential that India has….just look at him !….Gandhi Family Loyalty !…one more Rajiv Gandhi Scheme…this one offer Tax Breaks in Equity to tap Retail Investors…this segment has lost serious principal in equity ! you think they would be bothered with new tax breaks !…..also retaining 51% Government Stake in PSUs while announcing a disinvestment target of Rs 30000 crs for FY 12/13…in other words Government will continue to majority own PSUs and also retain managing them and their continuing Inefficiencies !
51 % FDI in Multi Brand Retail…”Held in Abeyance”
49% FDI in Aviation….”under active consideration”
Tax Exemptions and Bands marginally enhanced
Service Tax Rate up from 10% to 12% on a more widened base
Excise Duty up from 10% to 12%
DTC should be implemented soon…no date given
GST could come in by August 2012….heard this one before !
Fiscal Deficit is 5.9% in FY 11/12 up from 4.6% from revised estimates….For FY 12/13 he has targeted 5.1%…this is high too….What if Oil Basket exceeds US $ 125 per barrel…In FY 11/12 they budgeted for US $ 90 and are facing US $ 115 !
Food Security Bill to be fully provided for ….This is Sonia Gandhi’s pet…wonder if the announced 2% of GDP Subsidy Target can be adhered too !…also the huge incremental of Rs One Lakh Crores in Agricultural Credit outlay to a record Rs 575000 crs may sound good…but given the scammed history of government machinery in context of leakage and corruption ,I fear and I daresay,the Government has provided more Funds for misappropriation !