What would you do if you were the FM?

June 19, 2009

The task before the finance minister is tricky as the Congress-led government gears up to present the annual budget for 2009-10 on July 6.

Reuters India asks its readers to don the FM’s cap and tell us what shape they would give to the budget to keep a country of over 1 billion people happy.

Comments

I believe India is lacking in infrastructure. Infrastructure would mean – roads, transportation, schools, hospitals etc.To overcome we need i) funds ii) proper planning and iii) proper implementationWe should be able to get funds from the tax payers -i) by giving tax incentives as upto say Rs. 5 lac each individual would get tax deduction if he deposits in an account (Govt Infrastructure a/c). There would not be any interest and deposit can be returned after 3 year/ 5 years.ii) Reduction in tax rates particularly to salaried class whose net worth is getting eroded due to heavy tax as compared to a business person who is earning similar amount.iii)Minimise direct tax and increase indirect tax so as to better implement the tax collection.iv) Provide some incentives to tax payers – such in getting school admission, hospital, air and train travel etc.v) Creat an status symbol for tax payers such as above Rs. 1 million – Diamond Category, above Rs. 1 lac but within 1 million – Gold categoryOnce infrastructure is developed and tax is minimised, Indians would become more competitive to compete with anyone globally. It would attract more capital, exports from India would increase

Posted by Naresh Jain | Report as abusive
 

80C limit to be hiked to 2 lakhsTax slab maximum at only 20%STCG Tax to be reduced to 5%Return on bank fixed deposits to be made tax-free.

Posted by Aditya | Report as abusive
 

The government should encourage more agro-based industries to come up which will help the rural farmers to sell their products at a higher price and increase consumption…the prospect of getting better prices for agriculture products will encourage more people to take up agriculture…..Government should also set up more air conditioned warehouses across the country to store the food grains in good condition for a long time as currently a huge part of the grains collected are getting rotten at dilapidated warehouses….government should tax the IT industry more as most of the IT companies are swelling their pockets with tax breaks which are not necessary now…..also since most of our young people goes to IT related jobs, in the long run this may affect other high technology areas where we still lag far behind developed countries…the government should stop running badly manged companies such as air india which bleeds the government to the tune of around $2B annually….they should also encourage private players to take up more infrastructure projects such as roads and metro rail networks by giving them more tax breaks and soft loans thru government run banks…To increase the tax net, government should tax the farm sector, atleast those high net worth farmers to begin with…I would also like to see the government investing more in the modernisation of its police forces as a recent report shows that India is one of the most violent countries with Naxalism and other security threats hampering its progress seriously in large parts of the country and increasing their areas of influence….a country should be stable and peaceful to be economically prosperous…..also the govenment should invest more in education and health care .health care facilities in most states are at abysmally poor condition…

Posted by Suresh Kumar | Report as abusive
 

To encourage more people to invest in stock market, the finance ministry should conceptualize something like IRA and RIRA type accounts present in USA. This would increase liquidity, reduce black money and benefit investor.

Posted by Raj Sinha | Report as abusive
 

1. Allow depreciation allowance on vehicles and houses for individuals.2.Exemption on interest on housing loans may be scraped.

Posted by Mohan | Report as abusive
 

Take up infrastructure project… it wud help improving employment levels… invest in upgrading systems, implement e-governance where possible. Bring more and more public-private ventures to bring more transparency and efficiency.I am sure we have good policy makers and v good policies in place but they really lack proper implementation. What is the use of having all the fancy things on papers and not in reality. FM office should work towards reporting progress ward/constituency wise… empower local groups and public if needed to ensure work is going as planned. this is of course not a overnight task….. as i said… timely and orderly implementation is what we lack!!!! Pls fix it.

Posted by Vijay | Report as abusive
 

dear fm80Climit should be increased to 2 lacSD should be applicable to the salaried classno tax on fixed deposit intrestincrease rate of interest on saving bank by atleast 2%increase rate of interest on public provident fund by 1%attractive schemes for retired personsall borrowing rate of interest should be deducted for the middle class people i.e.house loan,car loan, personal loanvat should be abolishedALL IN ALL BUDGET FOR MIDDLE CLASS

Posted by madhuri sapre | Report as abusive
 

Resp. FM,Suggest to increase tax on property investors who exit with quick and easy profit; and they create speculation in real estate market. When speculating on movie tickets is punishable, how come it is allowed freely in realty.Strict regulations and higher taxes will help reduce speculation and make homes reachable in hands of common man.

 

Looking at the country, India is one of the leading development countries in the world. I would like to share few points which India needs to improve on:-• Looking at the infrastructure, the infrastructure of the country should be developed in rural/urban/non-urban cities/town. The govt should not concentrate only in few leading metros, but also concentrate elsewhere….the infrastructure should be compatible with the leading countries globally. (Hospitals, schools, buildings, petroleum, roads, railways, airways, postal, telecom, satellite developments, govt run organizations etc..)• Education is the first & foremost thing where most of the young Indians people are lacking due to poverty or no finance available. Govt should encourage children to compulsory go to school where in the govt should provides some type of scheme for the benefit of students. More govt schools to be opened in every town/city.• The public sector firms should be developed as per international standards. New technology & R&D to be used. Improve the market capital of the company’s. For loss making company – either merge with a private or some other public sector which is leading in market. Invest in training people with the latest technology.• To decrease the excise duty by 10% on electronic goods/ cars/household items.• Latest weapon/vehicles technology to police/arm forces for the betterment of the country’s safety. Training should be accomplished too.• To increase the property tax – real estate market for people who are having more than 100 cents, so that the property rate does not fluctuate in the market.• Tax slabs to be increased to – 2.5 lacs for male & 3 lacs for female & increasing the sec 80 cc limit from 1 lacs to 2 lacs. So that the middle men people could be benefited out of this.• Petrol/diesel price to be set as per the global crude oil price. To reduce the cost of gas depending upon market condition, because gas is a basic necessity for each & every individual at home. There should be no fluctuation every now & then in the market.• Increase the rate of interest in banks by .05% for savings A/c & FD by 2%. Focus on long term & short term investments to avoid inflations in the markets.• Allow foreign players to invest in Indian markets & vice versa.• Providing easy loans to farmers & agriculture people with less rate of interest & providing the latest R&D technology for farmers for easy yield of products with less cost.• Internet technology to be used in all sectors of business.• Allow people to invest more in share markets.• To reduce the rate of housing loan to .75% – because housing loan would be the main necessity for an individual & providing better schemes.• Govt to invest in discovery of crude oil.• Govt to invest more in public sector business – large scale & small scale industries.• GO GREEN – Govt to invest on go green technology to encourage people to “Go green”

 

Include interest paid on vehicle purchases u/s 80 C.Increase limit to Rs 2 lacs u/s section 80 C.Nishanth M

Posted by Nishanth | Report as abusive
 

had this opportunity comes to me i will focus only on the collection of taxes ,no seepage in collection can be tolerated.will keep eye on the country as a housewife remains vigilant for her kitchen items,just remove one small plate she will cry till it is found .d.k.jindal

Posted by d.k.jindal | Report as abusive
 

Respect FMthe Budget 2009- 2010 is not given any relief to the farmers. They should get some relief on waving interest of their agriculture loans taken from banks. Big incentives are providing to industries due to recession. Farmers and agriculture U should give enough importance.

Posted by joseph kj | Report as abusive
 

Extremly poor budgetIt lacks directionsWe need to make Income tax compulsory for all not put tax limits. Let it be small amount let it be even 5% but everybody should pay tax otherwise they would never respect infrastructure and act irresponsibly.When whole world looks for non-agricultural way of developing we still relay on agriculture. Are we going back or forwards? We need food but when things can be done by 10% of population how can you engage a major population in it? That is called inefficiencyThere is no clear cut direction for INDIA. India has lost to china and will loose it\’s power due to direction-less budgetTo give food to needy is a temporary solution but to make him capable to earn is real solutionUnfortunately this government has nothing to offer except sellouts and charity which is again inefficient way of managingOverall the stock market is too much up and this budget speaks that this government lacks clarity,will,management and economics to take INDIA forward or make it world leaderWith this budget there is no over-reaction this market is extremly over priced. India is flying in dreams and yet needs to test the level ground of actionsUnfortunately with this budget India has lost it\’s credibility once again. It is unstable. It is reflection of mindset of chaos and lazinessEnd resultThe real industry the real finance the real farm sector, the real estate is extremly overpriceand in 1 year or 7 years from now that is sooner or later INDIA will face the same credit-crunch and declining estate prices and will pay price for lack of visionary,greed and mismanagementBottomline the correct land value in INDIA is 50% of what it is nowThe correct market is at least 60% down meaning this market is 60% overpricedThese may seem overstatements or pessimistic views but this is realityThose westeners who are investing in INDIA are just playing games and they will withdraw sooner or laterWe still work on populist not econmoist fundamentals which means we want everything without doing anything and that will be the cause of our downfall

Posted by anil | Report as abusive
 

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