In my opinion, this is quite a balanced budget. I don't understand that why most of the people are criticising this budget. Please also give reasons for the same.
Lets not forget the fact that Mr.P Chidambram has been one of the best finance minister India ever had. Most of you are not aware of the fact that Mr.Chidambram is also a renowned Income Tax lawyer and a post-graduate from Harvard University. Income Tax Act and Indirect Tax laws has underwent some great radical changes in past few years under his command over the Finance Ministry. Though it was very disappointing to have Mr.Pranab as finance minister last year. Also lets not forget the fact that he is also being guided by Dr.Manmohan Singh, who has been declared the best Finance Minister of not just India but the world. Please dont think that i am supporting congress or anything, i am just stating the facts. Honestly speaking, I am always in favour of BJP. I am just expressing my honest opinion of this budget which are as follows-
Okay, I agree that it's bit disappointing to see that GAAR and DTC has been postponed but there are some genuine reasons for this. The fiscal health of Indian economy has to be restored first before bringing such drastic changes. India has to first recover from this slow growth rate.
Some of the appreciable points in the budget in my opinion are-
A great step is being taken to impove the education sector of India (dont you believe "Padhega India tabhi to badhega India")
Firstly,Funds of Rs.100 crores has been allocated to universities like BHU, AMU,etc.
Secondly, Indian Institute of Bio-Technology is to be set up in Ranchi.
Thirdly, 6 Medical Colleges in par with standards of AIIMS is to be set up. (This was very much needed as India is facing immense shortage of doctors.)
Fourth, Scholarships for minorities has been announced (I am against reservations and I believe scholarship should be based on merit for poor people not just for minorities).
Now, this budget contains some vital steps for empowerment and security of the female citizens of our country .
Firstly, The govt. has announced setting up of Nirbhaya Fund in an honour to Delhi's braveheart. The fund is for women empowerment and safety.
Secondly, the govt. has announced setting up of India's first Women's bank as public sector bank by October.
This budget has also announced some great step to encourage entrepreneurship in our country-
Firstly, As per the budget, the Incubators set up by Companies in Academic Institutions will qualify for CSR. This I believe is the most welcome step to encourage entrepreneurship among the youth of our nation.
Secondly, the Manufacturing Companes investing Rs.100 Crores or more in Plant & Machinery from 1/4/13 to 31/3/15 will be allowed 15% investment deduction apart from depreciation. (I believe this will promote Industrial growth in our country as this additional deduction will be a great incentive for industries and they will be lured to replace old Plants with new one with higher productivity.)
The budget is no doubt very taxing for the super rich as the import duty of Imported Luxury cars and yacts has been hiked (which will not be a problem to anyone. And also this will help in bridging the fiscal deficit by slowing down the import of luxury cars).
Some other appreciable points for common investors are-
Firstly, STT has been lowered.
Also the Rajiv Gandhi equity saving scheme has been liberalised to permit deduction for investment in mutual funds also for the first time investors. (I believe this will boost the morale of common investors and encourage more investors in the market.)
Well this was just my honest objective opinion about the budget. In my opinion Mr.Chidambram is no doubt, a highly qualified Finance Minister and I believe he is comprehending Indian Economy very precisely to do what will be best for the future India.
Your criticism, appreciations and suggestions to my opinion are most welcome.
Thanking You.
Kind Regards
Ashish Pathak
ashishpathak2010@gmail.com
CAclubindia
