The Hindu Business Line : Saturday, March 01, 2008

BUDGET
Load on taxman eased
Mr P. Chidambaram is undoubtedly a lucky Finance Minister. He has many firsts to his credit. The tax-GDP ratio is at an all-time high of 12.5 per cent. Direct tax collections touched Rs 3-lakh crore for the first time. For the ... More

DDT, STT: Marginal reprieve
In the last Budget before the forthcoming general elections, the Finance Minister has decided to keep corporate tax rates unchanged. Though rates of Dividend Distribution Tax (DDT) and Securities Transaction Tax (STT) also remain unchanged, the ... More

Union budget for 2008-09 — Populist but largely sane
The bailout for farmers on the scale the Budget proposes is a burden on the banks and on the fisc. The Budget, however, is well designed to maintain the growth momentum, says S. VENKITARAMANAN. More

Not enough for infrastructure
I have not read the fine-print yet but from what I have heard so far, this is a good intentioned Budget. Translation of intention to results, however, will determine future growth. For infrastructure creation, the crying need for the country, ... More

Towards growth
The Budget is growth-oriented with a focus on inflation control too. The increase in short-term capital gains tax will only temporarily bring down investor sentiment. And it is not such a big issue. For instance, if you are getting 40 ... More

Exuding confidence
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Middle-class bowled over
People from the poorer strata of society have never shown any serious interest in Budgets much less in their nuances, though indirect tax proposals do impinge as much on their fortunes as they impinge on the fortunes of the well-heeled. ... More

Lacking a cogent theme
The media had set the stage for Budget 2008, pre-empting the possibility for any differentiated thinking. Underestimating the intelligence of the voting population, the chorus for a ‘populist’ Budget in every form of media ... More

Participation exemption welcome
The Finance Ministry, keeping in pace with the international tax laws, has proposed an introductory version of the participation exemption regime in India. Under the international tax regime, the term ‘participation ... More

Ancient wisdom for the Budget season
He is ‘the light of kings’ who has bounty, justice, care and grace, reads Kural 390 of Thiruvalluvar, as translated by Suddhananda Bharati, in a chapter titled ‘the grandeur of monarchy’. The Finance Minister, P. ... More

Small car, big incentives
The Budget has brought welcome relief to the auto sector, which was otherwise reeling under a slowdown caused by firm interest rates. Players across all segments, be it the two-wheeler, car or commercial vehicle makers, stand to benefit from ... More

Pandora’s Box opened
The Budget has turned out to be a populist document of a government in election mode. The pre-Budget survey talked about the need to push ahead with reforms, resulting in protests from the Left. The interpretation is that the Government is ... More

Relief for all taxpayers
In Budget 2008, the Finance Minister has increased the basic taxable limit for all individual assessees. This results in a tax relief of around Rs 4,120 (including cess) for the personal taxpayer. The accompanying table shows the tax ... More

Consumption boost, but no market triggers
Depressing global cues and a slowing growth trajectory for India Inc have made for a rather lackluster stock market in the run-up to this Budget. Though expectations were at a low ebb, there is actually little in the document to put the ... More

Recurring social inclusion theme
The Union Budget builds upon the Finance Minister’s three-pronged strategy of last three years, i.e. focussing on social development, growth and economic stability. Measures announced in the Budget clearly underline an intent to spur ... More

Populism over prudence
In one stroke the Government has tried to please 3 crore farmers and, if one takes the average family size of four, 12 per cent of our population. Only time will tell whether the so-called relief for farmers really turns into vote bank. But ... More

Right moves
The budget has been presented at a time when the economy is showing some signs of slowdown on account of both domestic and global factors. The increase in interest rate and a stronger rupee have come as growth dampeners. The corporate sector ... More

‘Coal regulator could be stumbling block’
This is my initial reaction. I only heard the Finance Minister’s speech. One thing the Finance Minister has very quietly mentioned in the Budget is the proposal to set up a Coal Regulator. He just mentioned it in one sentence. I do not ... More

Reverse mortgage needs clarity
There is not much change in the Budget with respect to the housing industry. While few issues have become clearer on reverse mortgage, more clarity is still required. We are told that what the individual gets as an instalment will not ... More

Stitch in time?
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Compounded disappointment
It is disappointing that 10A and 10B benefits were not extended, despite the IT sector’s performance and current and potential employment-generation capacity. The disappointment is compounded in light of the steep rupee appreciation and ... More

Not a bad prescription
For the pharma sector, the Budget has not met major demands relating to R&D expenses, but has given in to demands related to excise and Customs duties, which could reduce the cost of drugs. Lower duties might spur an increased off take of ... More

Walking a tightrope
“We must produce wealth, and then divide it equitably. How can we have a welfare State without wealth?” said the Finance Minister in his Budget speech which had little surprise. His proposals sought to address a host of economic ... More

Deft steering of fiscal ship
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Balancing economics and politics
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A ‘sensitive’ Budget
Budget 2008 focuses on ensuring equitable and sustainable growth of the economy. India lives in its villages and Budget 2008 unequivocally acknowledges this. The agrarian population has been going through a tumultuous phase, and ... More

An inclusive, Bharat budget
The Finance Minister has rolled out a ‘Bharat’ budget. Key themes are inclusivity and common man, with a socialism flavour thrown in. The boldest step is the loan waiver and restructuring scheme for farmers. One move I would ... More

Bid to close teledensity gap
The outlay for National Rural Employment Guarantee Scheme (NREGS) has been increased to Rs 16,000 crore as against Rs 12,000 crore in the previous year. The budget also emphasises on the development of rural infrastructure and agriculture. ... More

Right stimulant
It is a good Budget. A Budget which is sensible and incentivises growth. The Finance Minister has tried to include all sections of society in the nation’s economic progress. Strong measures have been proposed to stimulate consumption, ... More

TAXATION
IT gets a raw deal
The Government has ignored the IT (information technology) and ITeS (information technology enabled services) sectors’ call to extend the tax holiday under Section10A of the Income-Tax (I-T) Act. The amendment expected in Section10AA for ... More

LETTERS

Budget illusions

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