Budget wish list-Mr Raj Halve-July 3,2009

Date: July 3, 2009

Author: Mr. Raj Halve, Business Expert in the field of PE Investment, Mobile Gaming, Teleshopping, IT, Liquor, E- Commerce, Hospitality and Entertainment Industry

Budget Wish List – Top 5

The Indian economy is at a pivotal point today and the budget will pay a crucial role in signaling the way forward for the economy. I see the budget more important in terms of the direction and philosophy it will indicate, rather than the specifics, as the flexibility the Finance Minister has is somewhat limited to do "big bang" policy changes.

With this in mind, I am therefore hoping and wishing that the Finance Minister delivered on the following:

1. Reductions in Subsidies: The fertilizer and other such subsidies must be reduced given the enormous pressures they are creating on the economy. Even if subsidies are required to make the goods affordable to the more vulnerable sections, the subsidy should be shifted from producers to end consumers.

2. Limitation on Fuel under-pricing: With world oil prices likely to be in the US$70 + range, the subsidization of petrol and diesel has to be reduced, if not eliminated. There are only so many lakh crores that the Government can issue as bonds. Even subsidies on kerosene and gas cylinders must be limited per family to incentivize judicious use of these resources.

3. Removal of 'irritants' : The various marginal taxes like FBT must be eliminated as this will show the commitment of the Government towards an overall simplification of the tax regime while impacting very little in terms of actual tax collections.

4. Timelines and targets on Dis-investment: I wish for a clear timetable on PSU disinvestment and focus on raising non-tax revenues. I also hope that specific targets on funds planned to be raised through this route are transparently announced.

5. Focus on Infrastructure: With infrastructure being perhaps the biggest bottleneck for India's growth, I expect to see a slew of initiatives to incenitivise both an exponential increase in the investment levels in such projects as well as a further incentive for timely implementation of projects.