Jul 5, 2009

Growth or fiscal deficit ?

What does the common man want ? simplified tax laws , a rationalized tax system - additional income tax exemption benefits, lower short term capital gains tax, withdrawal of some import duty exemptions, stress on alternative sources of energy, more jobs, lower fuel prices, lower rates on education loans (yeah that one was mine totally!)
The realtors want - the govt to provide more incentives for affordable housing and increase exemption limit on interest paid on home loans
The banks want - the govt to support an improvement in infrastructure spending
The business man wants - a revised value added tax - hence increase demand, sales figures and improve production numbers.
The economists say - lower fiscal deficit which is now at 13% , lower current unemployment rates , increase investment

Is the budget going to take the inclusive growth route ? try to be all things to all people ? Is there any statistically significant relationship between the fiscal deficit and inflation ? Does it even matter ? Where do we want the Sensex to land ?




1 comment:

Karthik said...

First thought seeing this post.. Did I get into NDTV india website?

Then I realize that this is no longer a blog of BE or MBA student.
But it is turning to a MBA grad's blog with so much of french and german for me with some impressive graphs:P

Hope to see some layman terms in ur blog please!!!