Indian Budget 2009 Analysis

6 July 2009 One Comment

Indian Budget 2009

Today is the Special day as it’s the First post on our blog and Indian Government Presented Budget of Year 2009, At the First look The Budget appears as perfect and attracts all the sectors of nation but in-depth analysis shows that its far away from Ground Reality .

The Target GDP Growth of 9% set by government for the financial year 2009-10 looks unachievable in such time when there is economy crisis all over the world. To achieve 9% GDP growth by increasing production in such a time when People don’t have any money to buy products or services is not possible.

Removal of some unreasonable taxes like fringe benefit tax, the cess and the surcharge on income tax, and the yet-to-be-implemented commodities transactions tax is certainly a positive aspect of this budget which should be welcomed. Also The Government had increased the the exemption limit by 10,000 which I don’t think would helpful for most of taxpayers. The New Exemption Limit is as Follows :-
• For Senior Citizens – Now Rs 240,000
• For Women – Now Rs.190,000 For
• Others – Rs 160,000

Also The Governement Had Increased the Budget for the national rural employment guarantee scheme, In which Government Guarantee 100 days of employment to poor families in villages at minimum wages of Rs 100. This scheme had been proved very effective in last year which results to its expansion this year .

Most of the Funds For this Year had been allocated to Non-Planned projects like subsidies, free homes etc as compared to Planned projects which is not good when the fiscal deficit is around 7% and government. The government also has to find ways to generate fund to reduce the gap of 4.5% revenue deficit.
For Detailed Key Points of Budget Click here.

Photo Credit :- Kekremsi