Ajcon Global Services ltd

Control fiscal deficit to invite Global fund flow Mr. Finance Minister.

Concerns over the sovereign debt defaults in some of the prominent countries of the world has made it a single most critical issue to control on fiscal deficit rather than focusing only on growth.
It’s a known and acknowledged fact that if you want a robust local capital market, you need FII inflow in the markets. In India whenever the markets have gone up we have given credit to excess liquidity coming in from FII’s and the reasons for markets going down is attributed to FII selling. And, this is true to a great extent as is evident from the fact that a small selling of less than Rs. 10,000 Crores by the FIIs has brought the Nifty down by almost 8% recently.

To achieve this objective of reduction in fiscal deficit I suggest the following ways:
1. Roll back of a part stimulas by hiking excise duty across the board by atleast 2%.
2. Reduce non plan expenditure.
3. Put forward a clear road map for disinvestment thereby raising a sum of not less than Rs. 1,00,000 Crores during 2010-11.
4. Complete the process of auction of 3G spectrum thereby raising a sum of about Rs. 40,000 Crores.

Few other suggestions I would like the Hon’ble Finance Minister to consider in his budget are:
1 Removal or reduction in the rate of dividend distribution tax.
2 Incentive to small investors to invest upto Rs. 5,00,000 in the Equity
Shares of infrastructure companies with a lock in of 3 years to get
tax benefits.
3 Bringing the short term capital gain rate back to 10%.
4 Reducing the rate of Securities Transaction Tax and restoration of 88E
benefits.
5 Raising the tax exemption base limit to Rs. 2,50,000/- for all assesses.
Ajcon Global Services ltd