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Budget today amid debate on stimulus rollback

Finance Minister Pranab Mukherjee will today present the Budget for 2010-11, amid speculation that taxes and duties may be raised as part of a partial rollback of stimulus prescribed by government's advisers. Full coverage | If I were FM...

business Updated: Feb 26, 2010 09:30 IST

Finance Minister Pranab Mukherjee will on Friday present the Budget for 2010-11, amid speculation that taxes and duties may be raised as part of a partial rollback of stimulus prescribed by government's advisers.

However, direct tax rates are not likely to be altered for the time being as the Finance Ministry is likely to wait for implementation of Direct Taxes Code from 2011-12, before initiating any change.

The direct taxes code, which will replace the archaic Income Tax Act, is unlikely to come in the budget session, sources said.

The debate on withdrawal of stimulus measures introduced in the wake of the global economic slowdown since late 2008 intensified today with Economic Survey and Finance Commission favouring gradual rollback of stimulus to check strains on government finances, but India Inc wanted the sops to continue to push up economic growth further.

The Economic Survey tabled in Parliament today suggested that stimulus be withdrawn gradually, since the economy is on the rebound and the growth is broadbased.

"The broad-based nature of the recovery creates scope for a gradual rollback, in due course, of some of the measures undertaken over the last 15 to 18 months," said the Survey.

The Finance Commission also recommended "a calibrated exit strategy from the expansionary fiscal stance of 2008-09 and 2009-10."