Thought for the day
”Never
let your sense of morals get in the way of doing what's right.”
-
Isaac Asimov (American, 1920-1992)
Word for the day
Previse (v)
To foresee; To forewarn
(Source:
Dictionary.com)
Teaser for the day
By resolving to obstruct
Parliament, Congress Party has only justified and legitimized all the
misconduct of opposition parties in the Parliament during past 10years!
Rose day, Chocolate day, Kiss day... Budget day
I have never been in agreement with the convention of combining
the announcement of government's socio-economic policies and programs with the
announcement of annual budget speech. Especially, when this practice has often
led to avoidable delay in implementation of critical programs and policy
issues. There are many instances where some obvious mistakes in tax laws have
to wait for next year's Finance Bill for necessary amendment, causing
absolutely avoidable harassment to tax payers.
Moreover, more often than not budget speeches are used to make
political statements and advance the political interests of the ruling party,
usually at common man's expense.
I believe that the legislative work, including tax laws should
be an ongoing business and not a discreet event. The annual budget should be
just that - "a budget", where
the government presents its accounts and seeks parliamentary approval for the
expenditure it wishes to incur on various heads.
The spread of satellite televisions reach has also led to
"commercialization" of the budget event, just like various
"days" that have secretly entered our social calendars. TV channels
usually build a hype around it and sell to investors as "make or
break" event.
I would like to seek the counsel of wise men (businessmen, fund
managers, investors, analysts, economists and policy makers) who are seen
regularly participating in this mega event in past decade - what strategic
investment or business decision they have taken or advised others to take based
on a particular Finance Bill provision? And whether such legislative provision
could have been made in regular course of parliamentary business other than
Finance Bill?
To my ignorant mind, there is nothing that created or changed
the business or investment opportunities in past one decade that could not have
been done outside Finance Bill or Budget Speech.
Having recorded my dissent, now I would like play the sport and
outline my expectations from the budget as sought by many readers.
Reading from yesterday's rail budget speech of rail minister and
statement of the finance minister in Rajya Sabha on fiscal health of the
country, three things are very clear:
(a) This government
is laying much greater emphasis on capital markets for resource mobilization.
Asset sale and equity dilution of PSE will be a focus. I would however like to
first see a policy framework for protection of minority shareholders in PSE
before making any investment decision.
(b) Revenue
augmentation rather than expenditure curtailment may be the approach to fiscal
discipline. Stricter tax compliance and
higher taxes would be the order of the day.
(c) Administrative
efficiency through e-governance which is one hallmark of Gujarat model, will be
a priority.
...to be continued
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