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Union budget 2011-12: admired though lacks sparkle The Union budget lacks flash, but is, on the total, optimistic in terms of macroeconomic impact, restructuring intent and specific sectorial focus. It pushes forward the proposed major tax reforms (the direct taxes code and the goods and services tax), brings down the fiscal deficit and overall public debt to prudent levels and jacks up infrastructure financing. It advances financial reform, with needed laws and separating public debt management from the monetary authority. It also gives specific attention to farm sector investment and marketing. Finance Minister Pranab Mukherjee's Budget lacks tax pyrotechnics, yet it reveals a remarkably improved fiscal position and a conceptual breakthrough in delivering subsidies through cash transfers for kerosene, fertilisers and cooking gas. He has also boosted reform prospects, pledging to revive seven financial sector bills, including landmark ones to raise foreign direct investment (FDI) in insurance to 49% and lift voting rights of foreign investors in banks.Little cuts in Tax may make Fiscal target achievable… After posting GDP growth of 8.2% in Dec quarter 2010 it is...more
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