Budget
2003 to be presented tomorrow by Finance Minister, Mr. Jaswant
Singh is likely to be soft, growth oriented and distributing
largees to all sectors of society feels Professor J.D.Agarwal,
Chairman, Indian Institute of Finance. The rosy, though largely
realistic picture presented through Economic Survey released
today is basis of his forecast.
The
Budget 2003 is likely to focus on infrastructure, provision
of quality transportation facilities in form of roads, rail
roads, ports and airports, provision of adequate power supply,
social sector, eradication of illiteracy , reduction in infant
and maternal mortality rate, eradication of diseases like
malaria and polio, safe drinking water and sanitation at reasonable
price by encouraging public private partnerships.
According
to Dr. Agarwal the budget is likely to consider fiscal consolidation
to contain the consolidated fiscal deficit in single digit
by restructuring tax system particularly with a greater focus
on service tax and bring a large number of services in the
tax net and also by focussing on tax administration efficiency.
The budget may announce rationalisation of subsidies on food,
fertilizers and LPG.
The
budget may also focus on improving the production in horticulture
products particularly fruits and vegetable and on development
of rural infrastructure through micro credit institutions
and enhancing the flow of rural credit. According to Prof
Agarwal, Finance Minister might announce the schemes to remove
inefficiencies and existing regulatory mechanism for increasing
the export potential of agriculture and also to create newer
avenues for fresh private investment in agriculture.
On
Tax front, Prof. Agarwal feels that minimum exemption limit
may be raised; tax rates / slabs may be realigned, both individual
and corporate surcharge removed. The payment of dividend tax
in the hands of individuals may also be removed. Dr. Agarwal
feels that further rationalisation of excise and custom duties
may also be announced in the Budget tomorrow.
The
Budget 2003 may bring cheers for most as outlook of economy
as presented in economic survey is good and encouraging and
also due to political compulsions in light of forthcoming
elections.
