FM has hit the bull?s eye
Chidambaram's Budget is directed towards economic growth and social development, writes Adi Godrej.
The finance minister has presented an excellent budget directed towards both economic growth as well as social development. The highlights of the budget to my mind are: A clear indication to move towards a national goods and service tax in the future.
Such a tax would make almost all consumer goods less expensive and thus create stronger demand. Such a reform would also lead to much lower indirect tax evasion and thus go a long way towards solving the nation’s fiscal deficit problem. The proposal to allow the taxpayer to choose his or her savings mechanism in a neutral manner will, to my mind, divert a large amount of money towards the stock markets and would help spread the equity culture in the country.