Dear Sir,
This is with reference to your section ‘Budget Line’. Please find below some thoughts on what the budget should deliver from Mr. Sandesh Kirkire, CEO, AMC:
“Given the limited revenue openings for the government, an ambitious budget with steep fiscal deficit may lead to sizeable borrowings - Thus crowding out the credit requirements of the private sector, and making the financial capital dearer. Alternatively, a fiscally prudent budget may prove to be restrictive in stimulating the demand in the economy. To circumvent this situation, proceeds though divestment of PSUs seems to be a critical choice in determining the effectiveness of the budget. Remember, the market cap of 66 listed PSUs aggregate to around Rs 12,47,291 crs, And yet, there remains a vast trove of more than 220 public sector enterprises that still remains outside the pale of the equities market.
One of the target areas where budgetary expenditure can deliver long-term returns while also energizing the demand is - Education! Given the vast human potential endowment, it becomes imperative that this resource be adequately developed for wholesome and assimilative growth. Another focus area is infrastructure. Poor Infrastructure has long been seen as
On the policy initiatives front, the Union Budget may seek to balance the structural incongruities in the tax regime, and bring about a uniform taxation system. In this aspect the implementation of the Goods and Services Tax will not only eliminate the myriad of overlapping tax structures, but will also simplify the process. This will also bring about an economic integration of the various provincial markets in
On the Banking side, the Reddy committee report of 2004 should be reconsidered to align the administered interest rates with the prevailing yield curve. This would remove an implicit interest subsidy that exists in the small savings market, and would lead to reduction in cost of borrowing for the government.
Amongst other budget possibilities, the budget should accord the equity FoF schemes the taxation status of equities, which has been a long-standing demand of the industry. There is a clear need for a Unique Identification Number (UIN) for Indian citizens. This may prove to be a common marker for state-security purpose, social identification and for financial & commercial purposes. This would also address the KYC requirements on various financial transactions. The PAN system in this backdrop can be expanded to fulfill the objective.
In conclusion, I hope that this Budget represents the values and aspirations of the people; and taps on the opportunities which the present cusp of events provide”.
Warm Regards,
Roshan.M.Negi
Associate
Genesis Burson-Marsteller
THE HOLMES REPORT, 2008 CONSULTANCY OF THE YEAR
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