Progressive Budget; Implementation the key: KRChoksey

KRChoksey has come out with a report on Post budget reviews.

Post budget reviews-Progressive Budget; Implementation the Key:

Thrust on inclusive growth, Reforms acceleration going forward: In our budget preview note, we had expected that Finance Minister would announce policy prescription towards fiscal consolidation, improve implementation governance and current account deficit. To large extent this budget has given enough attention to these issues, in our view. The budget has pegged fiscal deficit for FY12 at 4.6% vs 5.1% (Revised) in FY11, having positive impact on private sector investments. Direct Tax and Indirect Tax reforms are underway; GST will be rolled out in FY12 whereas DTC would be rolled out from 1st April 2012.

The Government has expressed its concerns on higher inflation though expects it to moderate in FY12 driven by improving efficiency because of increasing private participation in the farm sector and easing supply constraints on account of capacity expansion in core sectors. FDI regulations are likely to consolidate into one comprehensive document followed by further liberalization in financial services and retail sectors, in our view. Higher export growth and attractive FDI policy may result into lower or manageable current deficit. As highlighted by economic survey 2010- 11, the government is mulling to change the mode of subsidy payments and effectively control leakages in subsidies.
 
Corporate tax rates

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