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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Budget Extravaganza »
 Will Budget 2019 be startup friendly? Know what major reforms can take place; from tax structure to reducing MAT
 Will interim Budget 2019 reduce your tax?
 IT exemption threshold may go up in interim Budget
 Ficci for cut in corporate tax rate in Budget
 Can You Expect Income Tax Changes In Budget? Here's What Experts Say
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST

Finance Minister P Chidambaram should show more openness in Budget-making
January, 24th 2013

In his first stop during a four-nation trip to meet potential investors, finance minister Palaniappan Chidambaram has outlined his priorities for the forthcoming Budget. These include stable tax rates, a commitment to fiscal discipline and more reforms. Earlier, this would have been interpreted as a flagrant breach of the wall of secrecy that surrounds the Budget-making process. Whether that veil is really necessary is doubtful. In any case, we welcome the finance minister's move to bring some openness into the Budget-making process. His words are likely to soothe the nerves of investors wary of what Budget 2013 might bring. It has been speculated that this would be an 'election Budget', laden with sops and handouts. That, in turn, provoked fears that spending would get out of hand, enlarging the fiscal hole or prompting the government to winkle out more revenue through higher tax rates. Chidambaram's remarks are designed to allay such fears.

Over time, India's policymaking has gradually moved from being highly discretionary and wilful, towards more rule-based processes. If it progresses in the same direction, the secrecy around the Budget-making process will become totally unnecessary. To see why, consider the goods and services tax (GST). Once this is implemented, there will be one set of indirect tax rates all over the country, requiring no tampering with in the Budget. Once incentives and exemptions are taken out of the direct tax system, these rates can also stabilise at reasonable levels, requiring little or no tinkering within the Budget. One of the primary objectives of Chidambaram in his forthcoming Budget should be to move towards these goals. The implementation of the GST will need a buy-in from states, but he can make sure that rates converge towards those envisaged by the legislation. Some exemptions and incentives have been ironed out of the direct tax system, but many remain. They should go. His other priority should be to tilt public spending away from consumption, towards smart investments with positive social and economic returns.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

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