The budget presented by our finance minister on 26th Feb, 2010 is aimed at sustaining long term strategic growth while balancing out short term priorities of Indian government.
It has been designed to partially rollback fiscal stimulus packages ,doled out by government to handle economic crisis, embarking on fiscal consolidation period. The current fiscal deficit which is as high as 6.7% of GDP has been planned to cut down to 5.5% by 2011 and 4.5% by 2012 by series of consolidation measures.
Other major objective of this year’s budget is to take off long term inclusive growth plan. Ambitious programs like NREGA and UIDAI has been allocated sufficient funds to meet their objectives. Government has also given special boost to agriculture and infrastructure to help this growth.
Taxation rates have been fine tuned to get phased out to meet DTC and GST rates (planned to be effected from 1st April 2011). GST has been a big initiative towards united India indirect taxing policy. Direct tax slabs widening has given a big relief to middle class.
The budget has seen some criticism for increasing fuel prices, specially diesel and prices. But overall, industry, markets and corporates have received this very well. This is a budget from a seasoned politician who understands Indian needs very well. Well done Mr Pranab da!!!
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