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Thursday, March 15, 2012

Budget 2012:A Non Sequitur

Another Year, another Budget from the man who always wanted to be king but never was and the chances dim with each passing year.I talk of the honorable FM,Mr Mukherjee who once had ambitions of being Prime Minister.The chances of UPA coming to power in 2014 are slim unless they can put the economy back on track and at the very least project a strong and clean image.

Will he be bold and throwing caution to the wind come out hitting with bold reforms viz.FDI in retail,pension reforms,agri-distribution,cold storages,blueprint on SEZs,Freight Corridors.Will he push infrastructure,increase excise,decontrol diesel and Gas prices?

Will it be a subsidy laden budget with more schemes for the so called 'aam admi',full of reservations for various ST/SCs,freebies in education and additional deficit in the current account.We might not be running a debt of 230% of gross GDP like the Japanese but it wont take long to destabilize our fragile development.

The rising crude prices are raising inflation again although there is elbow room to cut income taxes to promote internal savings to icrease from current 8% to at least 10%

A best guess is a neutral budget.....but if Mulayam Singh's SP has come to an understanding with the Government then Mr Mukherjee can ignore Mamata Banerjee's Trinamool as he should cause politics should not hold the Nation's growth hostage.

At worst...the slew of various...Jawahar-Indira Plans will put further pressure on those who pay their taxes honestly or get them deducted as TDS...!!!!

Keep investing regularly and do not let the Budgets and other such events distract you from your main purpose.