Thoughts On Indian Union Budget 2009-10
Today was a big day since the Finance Minister, Mr. Pranab Mukherjee presented the budget 2009-2010 which was supposed to lay foundation for the financial year to come. Though it was promised that the budget would present an inclusive growth and equitable developmental opportunity from many fronts but apparently it was left high-n-dry in terms of market expectations.
As an investor, I was expecting more from this budget but nevertheless if we go through the fine print details, then sure the budget is looking forward to a long term sustainable development (as least that’s what Mr. Prime Minister proclaims saying “This is a clear-cut budget which brings together Bharat and India”). Also FM reiterates that India is on the regular path of a high growth syndrome and surely this budget will fuel the economy to return to 9% growth by FY 2012.
Now all’s fair and done. But if you’re wondering why am I talking about economy and things which is not the regular routine of 
this blog, then think twice. Every action (even a primordial one) at the Central Government level will definitely pave the path for growth of the sectors I definitely talk about i.e. Digital Media, Technology, Start-ups etc.
So what’s in there for all of us (especially for startups, digital, tech and allied sectors) from Budget 2009.Will plug in some of the best reports in terms of coverage comprising of primarily topics which you guys are well versed with to all-round coverage of Budget 2009.
So here are some of the coverage reports:
- Medianama did a live reporting on the Digital, Start-ups, Media, Telecom and its impact on the same.
- A more comprehensive coverage of Budget 2009-10 where all the aspects affecting the economy as a whole has been accounted. Source
- Speech of Pranab Mukherjee, Minister of Finance – In case you personally want to get deep into the fine print.
Obviously, the market didn’t like the proceedings, primarily due to no big ticket announcements from the FM. The policy displayed in the budget was short of expectations therefore there was nervousness which was quite imminent in the market. But personally I think we need to give some time to the Government because the intent is there and if short term stimulus with long term perspective is factored in, then surely all-round inclusive growth is not difficult.
But if I’ve to bet on the status quo, then surely my rating would be 3/10 since expectations were high and deliverance was obviously missing keeping the fact that right now, all we needed was a big push in the right direction in the short term as we barely were just out of the so-called global recession where valuations were marginalized (though some were far-stretched) and people expected more from the domestic front i.e. the budget 2009.
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July 6th, 2009 at
The budget is definitely a trigger to our move ahead, but what i think is one should look at it in different prospects.So it can be like individual growth, poverty removal, relief for much troubled farmers, further strengthening our battalion etc etc..and ya a boost for the sectors trailing becoz of rupree depreciation and other such factors..
so lets try to categorize them in a more clear line….
1.IT exemption to 2.4Lakhs and 1.9 lakhs for seniors and womens respectively + 10% surcharge scrapped–clearly shows the encouragement by the govt towards personal lines and upliftment of the women category..
2.Commodities and FBT scrapped–Its been a long demand from the corporate sectors since its implementation.
3.Drugs of heart diseases to become cheaper–again a welfare move
4.Reduced price of branded jewellery–promoting the gold sector
5.Customs duty halved in LCD panels–promoting sales
6.Higher investment in infrastructure–this actually fuels the growth for a strong economy
7.one rank, one pension for ex servicemen(very essential)–inequality in this had led to tremendous opposition from all rank people in our security set-up
8.Promoting the concept of Unique identification number
9.Interest subsidy for home loans upto Rs 1 lakh :Helping in one's personal front
10.Interest subsidy on educational Loans:Better encouragement for all economic groups of people
11.Saral-II forms to simplify taxation process:Helping individuals from tax hassles
12.Bringing an equilibrium between the global and domestic crude prices
13.Allocation of Rashtriya Krishi Vikas Yojna stepped up by 30%
14.Hike infrastructure investment to over 9% of GDP by 2014
Now i think one can better think of it as an "Aam Admi ka kahani" as termed by the honourable FM.
July 6th, 2009 at
Rightly pointed out that Mr. FM has tried for subtle populist measures but conjoining it with equitable growth and long term sustained development.
Appreciate your splitting down of Budget's key points into more in-depth pithy analysis.
Cheers!
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@Sampad
July 7th, 2009 at
I agree with you totally. The budget presented was more for long term reason than short of gains. And rightly pointed that Govt job is to create better environment for business to grow rather than providing economic stimulus.
July 7th, 2009 at
To me this budget is like the traditional Congress budget, the welfare state kinda.
On the whole its encouraging.
Its really heartening to see govt focussing on rural India, as we all know, rural India is really “the next big thing”.
Govt job is not to give stimulus to industries but to create the proper environment for better business. I kinda feel, this whole “meltdown” thing has brought many of our inabilities to front. And thanks to FM, for reminding us that the tough days are yet to over.
In the run up to budget the market was betting quite high since the poll result came forward. It had no real base, to me, the correction was inevitable.
Also, wonder why people are crying over stuff that are not budget related, its just a estimate of income and expenses.
Be it divestment, fuel policy, sale of spectrum, impetus to industries etc. are not direct budget issues. They are taken care by administrative measures.
In this neo-liberalisation age, I feel depending so much on govt shows our weakness, must be cured soon, coz, good times hides all these and next time it would be more complex.
July 10th, 2009 at
According to me Fringe Benefit Tax has been abolished so it will help all companies and the luxury bus operators who transported passengers either interstate or intra state will now be tax free.