Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARD :: TDS :: ACCOUNTING STANDARDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: Central Excise rule to resale the machines to a new company :: VAT Audit :: list of goods taxed at 4%
 
 
Budget Extravaganza »
 Government should reinstate wealth tax in Budget 2017
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget

Budget 2013: Six trademark budget moves by P Chidambaram
January, 17th 2013

Budgets have ceased to be about a big idea—the way, say, Manmohan Singh's presentation in 1991 was—but Chidambaram has strived to stamp each of his with one bold thought, if not more.

The boldest came in what is referred to as the 'dream budget', in 1997 in a Deve Gowda-led coalition that lasted 10 months, when he slashed the highest tax rate to 30% for individuals and 35% for companies, from 40%.

India ended up a peak tax rate that was lower than many developed countries and the 40% recommended by a Tax Reforms Committee.

"This called for considerable courage and he mustered it," says a fiscal expert who has served in various government committees in the last 20 years.
He declined to be named as he holds a government position and is not authorised to speak on such matters.

This fiscal expert says Chidambaram's thinking was that lower rates, backed by greater accountability, would increase compliance. He was proven right.

In 1995-96, a year before the cut in peak rates, personal income tax accounted for 14% of gross tax revenues.

By 2011-12, that share had increased to 18.5%. Similarly, in 2004, Chidambaram set a target to double agricultural credit in three years. It was done in two.

By 2008, when he moved from finance to the home ministry, bank credit to agriculture—which employs half of India's workers—was Rs 2,00,000 crore, against Rs 60,000 crore in 2004.

A Reserve Bank of India paper in 2009 concluded the spike in credit had a "significant impact" on agri production even though small and marginal farmers did not have great access to institutional credit.
"He takes his job seriously," says Surjit Bhalla, managing director of Oxus Investments, a Delhi-based economic advisory and research firm. "He identifies the task ahead and goes about achieving it methodically. The task now is to keep the fiscal house in order."

REFORMER ALWAYS, POPULIST WHEN NEEDED

For all his reformist and market-friendly credentials , Chidambaram is not averse to resorting to a dose of populism to make a big political statement. Even if it challenges popular, even his own, notions of fiscal rectitude.

In 2008, a year before general elections, Chidambaram announced a scheme to waive farm loans, which ended up touching 36.8 million farmers and cost the government Rs 65,000 crore.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions