The last budget of UPA before going to election in 2013 or 2014
was an opportunity for the prime minister Manmohan Singh to show what
difference does it make to be an economist. From the budget, presented by Finance minister
Chidambaram it seems that whole government is busy in covering up the scams and
has no time to think about serious mattes like yearly planning and resource
allocation.
Though there is nothing to talk about it, but still a few recommendations of budget are worth noting. Most important is its efforts to collect election fund. It wants to award in the next six months 3,000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh. These toll roads would add little more liability on Indian public and business, but …. … ..
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Though there is nothing to talk about it, but still a few recommendations of budget are worth noting. Most important is its efforts to collect election fund. It wants to award in the next six months 3,000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh. These toll roads would add little more liability on Indian public and business, but …. … ..
Next is an effort to
please the builder lobby. By an estimate
in Gujarat alone more than three lakh of
ready flats were unoccupied by
Dec’2012. This was because of
unrealistic high rates demanded by the project developers. To increase their sale the finance
minister has recommended
an additional deduction of interest upto Rs 1 lakh for a person taking first home loan
upto Rs 25 lakh during the period of
1.4.2013 to 31.3.2014. I have no statistics about the benefit DLF and
similar other companies will get from this recommendation around Delhi and
Moradabad.
To buy a house or
land there are two components to be paid
– one through cheque or draft for the amount which is reflected in the
documents – on which stamp duty is paid.
Other, which is forced to be
paid in cash and no receipt is issued. This is what looks as a black money to baba Ramdev.
High duties and restrictions are the main reasons for
under valuation of property in documents.
To add to the plight honourable
FM has recommended a TDS at the rate of
1 percent on the value of the transfer of immovable properties where
consideration exceeds ` 50 lakhs. Agricultural land to be exempted. Increase
in floating black money in land and building deals – pet of all politicians
and government officers
The government has taken no steps to improve law and
order or speedy resolution of court
cases after hue and cry in December 2012.
The message is that the Current Status Quo will be maintained. But to
deal with media highlighted cases a fund - “Nirbhaya Fund” – is to be setup with
Government contribution of Rs 1,000 crore. Is
this the solution?
Only provision in this budget liked by me is Rs 15,260
crore allocated to Ministry of Drinking Water and Sanitation and Rs 1,400 crore provided for setting-up of water
purification plants in 2,000 arsenic and
12,000 fluoride-affected rural habitations.
A better budget
can not be expected from a finance
minister who puts two times unplanned expenditure estimates than the
planned for which allocation is at Rs 5,55,322
crore. Against this Non Plan Expenditure
is estimated at ` 11,09,975 crore.
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