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Budget 2010 for dummies, from a dummy

Delhi Tracks
Delhi Tracks
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Yesterday, I attended a budget review session hosted by the American Chamber of Commerce (AMCHAM) and the US India Business Council.     All the Big 4 Accounting Firms (Deloitte, E&Y, KPMG and PWC) where present in full form to give their opinions on BUDGET 2010.     In terms of background, I know nothing about the Indian budget since I have only moved back to India a year ago.   But with all the hoopla surrounding the topic, I also thought that I should be well informed and decided to sit through the three hour session, mostly yawning.

 

Here is what I got from the speakers in terms of the goals for the BUDGET 2010

 

  • Targeting Growth Rate of 9%
  • Continuing the reform agenda (divestment of PSU)
  • Managed FISCAL Deficit  ( The budget deficit which is currently at 6.9% of GDP needs to be brought to 5.5% of GDP)
  • Inclusive Growth

 

It was quite simple, that the intent of the budget from a cost (expenditure) prospective was an increase of 15%.    So what are the sources of revenue that will help us meet these increased expenditures …. Taxes.. taxes and of course divestments , plus the much awaited 3G auction.  

 

All in all, the thought of Big 4 Accounting firms was as follows:

 

  • The budget is in line with expectations
  • Preparing for growth of 9%
  • And is directionally correct

 

Nothing more, nothing less.

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