Fiscal Deficit

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No dual pricing for diesel, no tax hikes either

Pranab Mukherjee, finance minister, spoke to a gathering of industrialists on Saturday at the National Conference of the Confederation of Indian Industry, assuring them that the government had no intention of adopting regressive policy measures. He said that dual pricing for diesel is not on the cards and neither is the government planning any fresh tax hikes.

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Highlights of the Union Budget 2009-10: Part Two

India’s tax-gdp ratio has improved from 9.2% in 2003-04 to 11.5% in 2008-09. The government wishes to simplify the tax structure. A new direct tax code will be released for public comments within 45 days and the new code will be finalised during the winter session of parliament. A Goods and Services Tax to be introduced from April 2010, but will comprise of a Central GST and a State GST.
 

Direct Taxes

Individual

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India’s Union Budget 2009-10: First Impressions

Overall Impact
The Union Budget 2009-10, as Pranab Mukherjee mentioned, is one of continuity. No major new schemes. No major tax changes. No change in the thinking of the government with respect to the fiscal deficit. No major reforms announced in the Budget, either. The initial impression one gets is that the government is hoping that the external environment will improve, domestic demand will pick up and lift the economy out the trough.
 

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