Firstly, a warm hello to all. Here is my Analysis of the Union Budget. Talking by a Macro Level perspective, our Economy is currently facing a 6.8% FISCAL DEFICIT that need to be covered quickly.
As expected by the Economic Survey 2008-09, Mr. Pranab Mukherjee was expected to raise atleast Rs. 25000crores through Disinvestment. But certainly only Rs. 11.2Million has been proposed to be borrowed from the Mammoth Private players. This depicts a strong attack on "short-term" goals rather than "long-term" vision. Thus, here comes the need to raise debt from the Financial Market.
The BIGGEST DISAPPOINTMENT Pranab babu's Budget has created is Lack of any clear-cut reforms on FDI limits, Financial Sector Reforms, Opening of the Coal Sector to Private players and the most crucial one, Disinvestment of PSUs(Public Sector Units). Still as the Budget Speech clearly stated, "a Single Budget cannot solve all our problems, nor is the Union Budget the only instrument to do so." Thus, as Pranabda told that Disinvestment Policy shall be finalized in the Winter Session of Parliament, we hope to see Disinvestment soon.
Another step that seems good but has no strong effect is the removal of CTT(Commodities Transaction Tax). It was announced in the Budget of 2008-09 by the then Finance Minister P Chidambaram. Its rate was 0.017%(Rs. 17 on Rs. 1Lakh's transaction). Though the entire Commodity Industry expresses its happiness on its removal, I personally feel that it doesn't make any "Revolutionary" move(as was expected). I feel so because this tax wasn't yet implemented also, thus it provides a relief from a "never faced difficulty"! Still I'll discuss other aspects too.
Bhagirath Baria
- Bhagirath Baria
- The Author of this blog has keen interest in understanding Economics and its implications on the Individual and the Economy as a whole. Has been writing articles and analysis of issues that may skip general observation, but exert deep influence on people's lives and their decisions. Discussions and Debates related to conventional as well as non-conventional Economics is done here. The author of this blog doesn't classify himself to any particular School of thought in Economics. He is tilted toward Mainstream Economics, though has keen interest in a few Heterodox schools too. Wishing all the readers a truly enriching experience.
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