Prof. Shrinivas R. Patil, Hubli

Leading to higher Inflation
The budget 2010 is really good for some people like farmers and middle class people. Mr. Pranab has increased the income tax slabs instead of increasing the minimum exemption limit as it was Rs.1,60,000 in the last year. The amount of Rs.1,60,000 would have been increased to at least Rs.2,50,000 as the income level of common man is increased. Two things I wish to say here, 1) Extending the waiving of farmers loan seems eyeing on election, but the negative impact leads to higher inflation as the availability of cash liquidity will be widened. 2) Inflation for the month February crossed already 8%, if further petrol price and excise duty is increased, then rest of the dependent commodities price will also increase. Of course it is inevitable to increase the petrol price as the oil companies are incurring loss on this front, but he would have generated the other revenue sources to compensate this corner. Once the inflation starts increasing the RBI intervenes to control the inflation by increasing the bank rates, so it impacts the whole economy adversely. Ultimately the budget 2010 is burden on poor people who are already suffering the price heat.

Prof. Shrinivas R. Patil
Professor of Finance
KLES’s IMSR
Hubli (Karnataka)
Email id: shriji.patil@gmail.com
Cell No: 9900409419

Rajesh Srivastava,Chairman, Rabo Equity Advisors

I can only compliment the Finance Minister for producing an excellent budget! The risk he took last year has proved well calibrated as fiscal deficit is restricted to 6.9% in FY10 and predicted at 5.5% in FY11. It is no mean achievement in the wake of the stimulus and huge certain concessionary schemes. I am specially enthused by his eye for detail. Items which may look trivial, actually are well researched for a long term positive impact. Though miniscule, allocation of Rs 200 crores for Climate Resilient Agricultural Programme or allowing 5 more Mega Food Parks are representative examples. The allocation of Rs 66100 crores to rural development and Rs 25000 crores for developing rural infrastructure are music to my ears. His proposal to increase subvention from 1% to 2% for timely repayment of crop loans is a very positive step towards creating a good credit culture as he is not rewarding the defaulters. Yet another perfectly timed proposal is to augment the assistance to Regional Rural Banks since efficient and transparent credit delivery is as important to the agricultural sector as any other tool and RRBs are one of the strongest channel. I am also impressed by his attention to the basic social infrastructure and allocation of Rs 3675 crores for primary education at rural level and a total social sector spending of Rs 1,37,000 crores are very focussed steps. Likewise higher allocation for Micro Finance Development and Equity Fund is introspective. Finally, the bold announcement of opening up of banking sector to NBFCs and private players and doubling the disinvestment target to Rs 50,000 crores, not to mention Rs 1,73,000 crores for infrastructure deserves accolades from all quarters. And I am not even talking here of individual tax payers being happier!

Rajesh Srivastava, Chairman, Rabo Equity Advisors

D. Subramaniam

The economy needed priority focuses on containing ‘fiscal deficit’ and ‘inflation’ and sustain growth. While the Finance Minister‘s budget proposal have mainly focused in addressing the fiscal deficit by bringing it down to 5.5%, the steps taken to address inflation do not seem to be adequate.
While increasing the price of petrol is understandable, diesel could have been spared. Now with sourcing of new gas finds an LPG cylinder of smaller capacity could have been introduced which could have been priced in a such a way that it is affordable and yet without much of subsidy.
The inflation is mainly fueled by food items and FMs budget proposals in agriculture seem to be very inadequate. The total credit flow target of Rs 3,75,000 Cr (an increase of Rs 50,000 Cr) is just seem to be not enough when the entire country’s problem are revolving around Agriculture. The focus on food security is not addressed especially when there is monsoon failure and abnormal price increases noticed in dhal varieties and sugar and mounting food import bills due to high global prices.
Also the budget has not initiated any reforms in PDS as IT could have played a major role in monitoring the availability of stocks of food items distributed through PDS. A national level grid could have helped in planning and positioning of items and also for replenishing the stocks when needed. The unique identity card, ration cards, identification of people BPL etc could have been addressed under the grid with a decent budget allocation.

D.Subramaniam
Address: Door No 4,First Floor,15 A,Rathinammal street, Kodambakkam,Chennai-600 024
Bangalore cell: (0)9841510270
email : dsmaniam.xime@gmail.com

B. G Vyas, President, RAK Ceramics

The overall budget gives both sigh of relief and enthusiasm for further growth. Honourable Finance Minister has given a huge boost to infrastructure sector which will in turn give us enhanced possibilities of market expansion. With FD investments made simpler and considerable reduction in fuel cost, our extension plans will see an early swift & at the same time the cost of production will be substantially condensed. With GDP expected to grow at 9% we see huge potential in the Indian market as enhanced living standard will turn consumers towards quality products and services.

B. G Vyas, President, RAK Ceramics

Mr. Pradeep Jain, Chairman, PDL

I personally feel that today’s budget was for aam-admi, it is good for each and every individual in the society, the budget is supportive for the tax payers as the extension of limit will help in reducing burden on individual tax payers. I am sure that the budget tabled today will induce renewed sense of optimism over the country's growth. Adding further, Mr. Jain, said, that, “The budget is good for all public in general and for infrastructure sector, food processing units and the large support to the rural development including PPP projects, education and health etc. In other words, the budget is good for each and every individual and all the sectors. But the developers have looked forward to more sops to bring housing affordable for all the sectors of the society, however, we welcome hon’ble finance minister’s move of provision of Rs 700 crore and extension of interest subvention scheme of 1% on all individual housing loans upto Rs 10 lakh for units costing upto Rs 20 lakh till March 30, 2011. The scheme recognizes that cut in interest rates has an important role to play in reducing EMIs of borrowers & creating additional demand for low cost housing. We are of the view that it will encourage and prompt the developers to give more importance to projects which will cost upto Rs 20 lakh. However, it would have been more fruitful for the buyers and developers had the limit been increased from units costing upto Rs 20 lakh to units costing upto Rs 30 lakh” “Hon’ble finance minister’s further support to the real estate sector to continue to get the benefit under 80IB(10) on the ongoing affordable housing projects which were earlier required to be completed in 4 years from the date of sanction are now allowed to be completed in five years. This indeed is a direct support to the sector as during the slowdown some projects did get delay but now the developers will continue to get the tax benefit in affordable housing projects under section 80 IB (10),

T.V. JAYAPRAKASH

Increase in transportation fares will lead to vicious cycle of inflation
Threat of bus fare increase due to enhanced fuel prices is a permanent head ache for the common man. This will lead to a vicious cycle of inflation too. Consideration for the welfare of women and children is a healthy trend. Aim of urban development and slum clearance will pave way for growth. Development of rural and urban infrastructure with an expansion of 20 km highway per day is a positive phenomenon. It is seen that development of highways directly and indirectly helps the rural farmers. A decreasing trend in budget deficit of 6.9 per cent in 2009 - 10, 4.8 per cent in 2011 - 12 and 4.1 per cent in 2012 - 13 is good. Privatisation of insurance and increasing monopolies will widen the gap between the haves and have nots.
T.V. JAYAPRAKASH, MA(Eco), MA(Socio), MCJ,

Vice Principal, MES Women's College, PALAKKAD.Research Officer (Rtd), Directorate of Economics and Statistics, Government of Kerala.

S. RAGHUNATHA PRABHU

Sir, No attempt is being made in the Budget to bring back black money of Indians held in Swiss banks whichis around $ 1456 billion ( about Rs.7,00,000 crore ).Instead of hiking the excise duty on petroleum products,the FM could have taken steps to bring back black money to mobilise more resources. He could have announced an amnesty scheme and shared the inflow of black money between the Govt and the black moneyholders on a 50 : 50 basis.The Govt. lacks political will and doesn't worry about the mounting fiscal deficit.

S. RAGHUNATHA PRABHU