Economy will grow at 9-10%
IT is an excellent Budget which will truly take India on to a new plane ofrapid economic growth. There is really nothing that can be faulted.Particularly noteworthy steps are removal of most of the surcharges ondirect taxes, reduction in dividend tax, movement towards a lower interestregime, removal of excise duty on processed fruits and vegetables, theproposed amendment to the Industrial Disputes Act and various measures tosystematically control the fiscal deficit.The Budget will definitely help in getting the economy to grow at the rateof 9 per cent to 10 per cent. The Budget has restructured labour laws, whichis a good thing, as long as the statement of intent is executed.A reduction in dividend tax and other taxes will help improve thebottomlines of the companies. The profit after tax (PAT) as a percentage ofprofit before tax (PBT) will be lower.
The Budget has been good for investment decisions in infrastructure. Some ofthe taxation measures will help boost investments in these sectors.Fiscal deficit targets have been achieved. This is for the first time, andit is a good thing. I would expect the finance minister to achieve thetargets fixed for the current year as well. The Budget is very positive and,I think, it will have a good impact on the capital markets. It has alsoushered in a "feel good" factor which was earlier missing. Psychologically,the Budget has been very good.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
