Budget 2011 is a mature budget: Marg Group
Reaction on Union Budget 2011 - 2012 by GRK Reddy, Chairman & Managing Director, MARG Group.
March 01, 2011 / 14:59 IST
Reaction on Union Budget 2011 - 2012 by GRK Reddy, Chairman & Managing Director, MARG Group.
This is a mature budget from a seasoned Finance Minister. In my view the Finance Minister has put in place a budget that will preserve the balance that India has achieved between growth, sustainability, stimulus packages and inflation worries. The non-sensational nature of the budget shows that the Finance Minister does not believe in reacting to shrill voices from pressure groups with a knee jerk reaction. The proposals with regard to infrastructure are quite pro-sector. The Government established India Infrastructure Finance Corporation is aggressive in providing long term financial assistance to infrastructure projects. Its cumulative disbursement target of Rs. 20,000-cr by March 31, 2011, and Rs 25,000-cr by March 31, 2012 sounds very inspiring. Also, the allowance of tax free bond of Rs 30,000-cr to be used by various Government undertakings in the year 2011-2012 to give a boost to Infrastructure development in railways, ports, housing and highways development, is a welcome move. The stimulus package for the affordable housing sector is most welcome. The investment linked weighted deduction, primary lending enhancement from 15 lakhs to 25 lakhs, liberalization of interest subvention of 1% and creation of mortgage risk guarantee fund to enhance credit worthiness of EWS & LIG households, will together provide a surge in affordable housing demand. I feel that reduction of surcharge on corporate tax from 7.5% to 5% and weighted deduction in R & D will encourage investments .At the same time FDI in mutual funds will enhance liquidity. The common man has a lot to cheer and the cash left back in his pocket may help him address short term worries of inflation. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
