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: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: cpt :: ACCOUNTING STANDARDS :: VAT Audit :: VAT RATES :: form 3cd :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: due date for vat payment :: ACCOUNTING STANDARD
« 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

FM sees inflationary pressures rising
August, 27th 2009

Finance minister Pranab Mukherjee on Wednesday ruled out any further fiscal stimulus, but said inflation pressures would return by the end of the year. Mukherjee also admitted for the first time that the goods & services tax (GST) rollout planned for April 1 next year may be difficult to achieve unless all states came on board.

As far as fiscal stimulus is concerned, we have practically stretched ourselves to the maximum. We will know fully only at the end of the second quarter whether it has had some effect, Mukherjee said at an Idea Exchange programme hosted by The Express Group on Wednesday.

While the government is tackling the slowdown and the drought, Mukherjee saw other dark clouds on the economic horizon By end of the year, there should be some inflationary pressures. They are already having some effect, he said. The finance minister is also apprehensive about oil prices shooting up after December, when demand in the US and Europe is expected to pick up.

Inflation rose to -0.95% for week ended August 15 from -1.53% the previous week, according to data released on Wednesday. Analysts expect inflation to touch 7% by March.

Mukherjee said managing the governments borrowing programme and the fiscal deficit posed challenges, especially since buoyancy in tax collections is missing this year due to the slowdown. The government plans to borrow a total of Rs 4.51 lakh crore in 2009-10, taking the fiscal deficit to 6.8% of GDP. The Reserve Bank of India and the government have to ensure those borrowings do not crowd out the private sector, the minister stressed.

There will be pressure on the fiscal deficit and issues of how to manage and prevent (it). I cant take the responsibility of creating additional fiscal deficit. I will have to bring it back. I have fixed targets for 2010-11 and 2012-13, but I dont know how it will be managed. So far this year, I have taken an extra Rs 1,000 crore on diesel subsidy, he said.

Contraction in indirect tax collections and the slow pace of direct tax growth have aggravated the governments fiscal management programme. The buoyancy is not there in indirect taxes. Direct taxes are going on more or less at par. We cant have buoyancy in indirect taxes unless there is production, he reiterated.

Indirect tax collections fell by 28% to Rs 63,623 crore in April-July 2009.

From Rs 88,395 crore in the same period last year. Direct taxes rose 3% to Rs 73,990 crore in the same period.

Deflecting a question on whether RBI could cut rates further in light of the limited fiscal space, Mukherjee said he would urge banks to keep some headroom and provide credit to the private sector, especially in sectors like housing. (Banks) are simply not going to keep (liquidity) with themselves, and I would discourage them to put it entirely in government securities, he said.

On the GST, Mukherjee said though there is consensus among most political parties at the Centre, opposition in the states could hit its implementation. There has been substantial convergence of views, but there has been divergence also. I am hoping to manage the divergence of views. Most political parties on the floor of the House have agreed to GST. This will aid the legislative aspect, he said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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