Let us be fair to Arun Jaitely, it was not an easy job. His boss has clearly said ‘no populist measures’, and AJ himself is not very experienced.
On the other hand AJ or Na Mo did not really matter. The people are (were) expecting magic from Na Mo. The people surrounding him would have made him believe that he is God (the Delhi results helped in keeping him on the ground).
The Railway budget and the annual Central Budget have one thing in common – many small changes. Chipping away at the stone so that it looks like an idol is Na Mo’s way of doing things. He does not do big bang. Of course Ganga cleaning, Swachha Bharat, etc. are big bang, but he did not announce any big bang reforms in the financial sector.
His team has correctly identified our biggest problem – lack of investments by the people who have money. Look even at Bombay House – Mr. Mistry is consolidating. He has sold assets, companies, etc. BUT he is not investing big time. He realizes that mistakes like Mundhra can hurt even a big group like the Tatas and hold back their growth. I am sure the group’s biggest investment is in JLR and not in any other business. The reasons are obvious.
The tax change from 30% to 25% is a welcome move – but it will not really make people invest more. Tax is only for people who make profits!!
The infra funds like spending $ 12 billion and the setting up of an Infra fund with Rs 20,000 crore capital allocated is good, but one has to see the implementation.
No major changes in taxation, but I do not like the increase in Service tax. This hurts the small man more than the big man.
Not sure whether he can do a differential service tax. I am not sure whether it is worthwhile.
Why the individual personal taxation also cannot be reduced like the corporate tax rate, beats me. However, I continue to maintain that we are in the MECCA OF TAXATION as far as equities is concerned. It cannot get better.
Like I said elsewhere “The Forbes List does not have any employees” – to get seriously rich you need CAPITAL GAINS.
However, the budget is not bad. Like they say the devil is in the details. Let us see Na Mo’s ability to implement. I wish him all the luck and hope that he is able to do a good job. As a man NARENDRA MODI has shown amazing implementation skills in Gujarat. Let us hope we allow him to do it for India.
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