'Din' from 'The DEN' - Big Budget 2015

'Din' from The DEN - Big Budget 2015

Much anticipated Budget has come out, sans fireworks.  May be because PM Modi had lighted the gun powder directed at the main opposition the previous day itself in the course of his motion of thanks to the President in Lok Sabha.  Cameras were often focused across on the crest fallen faces in the live telecast proceedings of the House on 27^th February 2015. This has resulted in maintaining of decorum by all in the House, barring one stray retort from a leader.

As it should be, Budget is a policy document of the Government that explains how it intends to achieve its objectives in course of time.  In India, we are used not to hear policy statements and directions, but of the give-a-ways like freebies or waivers and cash distributions from the government.  Rob Peter to pay Paul. Only figures interest people.  Individuals judge the budget and categorize it as good or bad depending on the extent to which they are  affected with.  Seldom one finds a dispassionate assessment.  After all, everybody has an ax to grind!

The atmosphere is good to the Government given the fact that oil price is ruling at a very comfortable level  resulting in lesser foreign exchange outflow and reduced burden of subsidies.  Major part of pruning the deficit has been taken care of automatically by the fall in oil price.  The benefit of international oil price reduction was not fully passed on to the consumer so far.  That made the job easier coupled with moderating inflation.  The Government achieved the deficit target.  When one is given a concession it is difficult to withdraw later.  It becomes a right without obligations.  An opportunity to reduce subsidy was lost and even an effort at that is not seen in the budget.

Budget being a policy document, without going into the bolts and nuts,  envisions a path that would lead to sustained progress.  There are positive announcement for boosting sectors like, Education, Defence, Agri. and Tourism.  Visa on arrival for 150 countries is targeted towards a gold mine.

A good chunk goes to welfare schemes to take care of the neglected.

Gold monetisation is another step to release static gold in the form of unproductive holdings for economic investments.

Abolition of wealth tax is compensated by taxing rich through a 2% surcharge.

Across the board increase of Service tax and  Swachh Bharath Cess would increase the incidence overall and generate a sizable revenue to the government.

Gradual reduction of marginal Corporate IT rates by 5% over a period ensures more residual income for ploughing back, whilst  Individuals are taken care of by the promise that base limits of taxation would be gradually increased in due course commensurate to the buoyancy of the revenue collection.  Overall the promises are prospective to the tax payer.  However middle class individuals did not get a respite though some crumps are offered through increased deductions / allowances. The fact remains that the disposable income has not increased.

Steps to deal with Black Money in overseas and in India are welcome and should be effective with deterring punishments.

On the whole there have been no give-a-ways coupled with increase in the burden of tax.  The proposed investments in the industries and welfare measures should ensure upliftment in the years to come. With the hope of lesser leakages in the implementation, the intentions must be realised to mitigate the immediate pain.

The  direction of the budget is good and we await with crossed fingers for that to happen.  The market sentiment also seems to be good with the increases in NIFTY and Sensex on the budget day. This augured well.

Awaiting a kindle to add one, so long.