More reports on: Economy - general
Broadens the tax base, ensures fiscal discipline: Minakshi Batra, India Director, IDA Ireland news
28 February 2011

The Union Budget presented by the finance minister today leads the thrust on broadening the tax base, introducing counter inflation strategies and ensuring fiscal discipline. The economy has shown a lot of resilience with the GDP estimated to have grown at 8.6 per cent in 2010-2011.

Minakshi BatraHigh growth sectors such as infrastructure, agriculture have been given special focus in the budget. The rise in credit flow for farmers and removal of distribution bottlenecks will catalyse the growth in food and agricultural sector. 

The finance minister has also accounted for an excise duty exemption for suppliers producing capital goods for mega power projects; providing the much desired boost to critical infrastructure projects. In terms of Information Technology, the industry wish list of STPI extension has not been addressed in the budget. But we expect the proposed DTC to become the stabilising agent for the industry, once it is enforced in 2012.

In terms of tax reforms, the budget also specifies concrete and actionable steps towards the enforcement of GST which will augur well for the industry as a whole by bringing about uniformity in taxation. Institutionalising the Financial Sector Legislative Reforms Commission to revamp  per cent rise in MAT to have a significant impact on India Inc.

The closure of Tax Information Exchange Agreements and double taxation avoidance agreements are strong indicators of the emphasis that the government is laying on combating money laundering issues. Over all, the Union Budget for 2010-2011 is quite a balanced one and is a step in the right direction.''

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Broadens the tax base, ensures fiscal discipline: Minakshi Batra, India Director, IDA Ireland