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: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: list of goods taxed at 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: cpt :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT Audit
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

Flat Budget: Congress scared of Pranab stealing show
February, 17th 2009

Mystery surrounds the UPA government's decision to present a flat Interim Budget /Vote-On-Account (VoA) devoid of any tax changes/fiscal
measures. Standing finance minister Pranab Mukherjee has cited constitutional propriety to justify his playing by the book. Indeed, as this paper wrote in its Learning With The Times column on Sunday, by convention, a VoA is meant to do no more than simply seek Parliament's approval for expenditure to run government in the 3-4 months of the transition phase before and after elections, till a full-fledged Budget can be presented.

Just as there's nothing that stops a nighwatchman in Test cricket from scoring a few runs instead of merely holding the fort, there's nothing in the Constitution that prohibits a government from doing more. Why then did the UPA forgo an opportunity to come out with a few vote-catching fiscal proposals just ahead of elections?

It could have justified another stimulus package in the Budget in the context of the global financial crisis and the domestic slowdown in business. The Opposition, which in normal times would have been well within its right to cry foul, would have appeared churlish in blocking say, tax/duty incentives/rebates for the salaried middle class or industry or for investors, given the urgent need for an economic recovery.

Mukherjee, in his speech said, "There may be need to consider additional fiscal measures when the regular budget is presented by the new government after the elections." Deputy chairman of Planning Commission and Manmohan's economic confidante, Montek Singh Ahluwalia reportedly said that with just a few more days of this Parliament remaining, there would have been no time left for discussion.

Fact is that the last Budget (2008-09) was cleared by Parliament with almost no discussion.

All these questions have spawned a range of speculative answers, none of which can be confirmed. The one that's doing the rounds the most is that the Congress high command did not want Mukherjee, who's standing in for a still-recovering Manmohan Singh, to steal the thunder with a flurry of crowd-pleasing proposals.

According to this version, the government might in the coming days come out with a third stimulus package. But senior Congress leaders scoff at this conspiracy theory while senior finance ministry officials discount the possibility of a last-minute dose of fiscal measures from this government.

A top official in the ministry pointed out that between the two stimulus packages so far, the government had signalled additional spending of about Rs 150,000 crore as well as duty rebates of Rs 40,000-50,000 crore. The Reserve Bank, too, had pitched in on the monetary policy front with rate cuts and various other measures aimed at stimulating growth. "A lot has already been done. We must first allow the impact of the recent actions to play out. Also, there are signs of some industrial recovery in February," the official said.

At the same time, Montek has kept the window open for more monetary action. He was quoted by a TV channel as saying that it was for the RBI to decide on the timing of such action. Having been disappointed by Mukherjee's Budget, the markets now seem to be pinning their hopes on another dose of rate cuts.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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