|
'The budget on the whole is more geared towards the masses. It seems the govt has thanked the masses for voting them back into power says Govind Pathak, Certified Financial Planner, Acorn Invesments'. Here's what he has to say about Budget 09-10 Deficit going to increase: The deficit is going to increase more than anticipated without even announcing major initiatives for infrastructure like Road, Power etc.
On the revenue front, part divestment of some PSUs as well as further freeing up of insurance sector was expected. May be the minister did not want to take the thunder away from his colleagues in other ministries. For example the Minister for Surface transport has already announced initiative to make 20km of new roads a day.
FBT done away with: The FM has removed FBT and surcharge of 10%. Excellent. Puts more money in the hands of the public. Mostly for people in higher income categories.
Corporate tax: Left unchanged with MAT raised from 10% to 15%. Good overall.
Stock market related taxes: Left unchanged - STT, Short term and Long term taxes. Markets remain attractive for long term investors from tax perspective.
Also, may be the finance minister is planning to make budget a non-event in future by announcing initiative throughout the year rather than one specific day. If that is the case, we have much to look forward to. As per the Prime Minister’s initiative, all ministers are expected to announce broad game-plan for their ministries in 100 days. We can expect more initiative to be announced then. More will be known when one reads the fine print of the budget paper.
From equity investors point of view, too much expectations were built up before the budget. The reaction provides excellent opportunity for long term investors to enter the market.
| .gif)
