BUDGET EXPECTIONS

The budget is important event in the country effecting planning’s of man people but what can we expect from the budget. The following points one can expect from the budget.
1.Full / Phase manner rollback of stimulus package.
2.Hike in personal income tax basic limits.
3.hike in excise duty
4.Benefits to export oriented sectors.
5.More benefits for software industry
6.Review of the STT system due to implementation of New Direct Tax Code from 2011-12
7.Road map for implementation of GST
8.Disinvestment of other PSU
9.Certain announcements with regard to housing sectors
10.Strategy for bringing down the Fiscal deficit.
11.Infrastructure spending for development of Roads etc.
12.The GOI may also consider to bring down subsidy for fertilizers due to gas based production.
13.Reconsider tax benefits U/s80C
14.May bring in more stiff provisions for tax evasion

I feel the budget may surprise many of us because the main effort will be to bring down deficit without hurting the growth of the country. However with inflation at 8.5% and likely to cross 10% in near term, the only option available to FM is to Full / phase manner rollback of stimulus package. However these packages will continue to EOU because the export is just picked up for last 2 months or so with increase of 10%. The main beneficiary will be the ITES, Textiles & EOU etc.
Therefore taking into consideration above points i feel that budget will be a disciple affairs and one should not expect more from FM. The market may react negatively with regard to rollback of stimulus packages & Hike in petrol etc.
WITH ROLLBACK OF STIMULAS the IIP will stabilise at around 12%, GDP at 7% and inflation will be at 3-4% after rollback for first FY and growth will be at better rate provided there is no policy overlapse from GOI.