2010 budget..!!

Finally,the budget has been presented by the government. It has evoked mixed reactions from various stakeholders. The industry has welcomed the budget as a fine balance between growth and fiscal consolidation. The salaried class has got bonanza of about Rs 30,000 through reduction in income taxes. But,the common man has been hit hard through imposition of taxes on petrol,steel,coal etc. Moreover,the number of services under the ambit of service tax has been increased. The intention of the government to curb fiscal deficit is clearly visible but it could have been done in a better way. The government could have reduced expenditure through reduction in subsidies and improving the delivery mechanism. Time has come to get rid of the practice of issuing oil and fertilizer bonds. The announcement of GST and direct tax code was a welcome feature of the budget.

However, the budget still failed to have a clear vision. With elections 4 years down the line, the government could have been more bold with regard to various reform measures. However, it can be attributed to the compulsions of a democratic set up and the pressure to please everyone. Lets hope,the FM comes with a better one next time..!!