Saturday, February 27, 2010

Knock Knock...Its Budget 2010-11






Budget from critics view, Budget from investor’s view, Budget from industry view, Budget from Aam aadmi’s view etc etc are the variety of TV shows which have surrounded all the news channels since the announcement of Budget 2010. Many folks argue that Budget is not an important event; they say Budget Day is important only to the politicians and vice industrialists. According to them budget makes no big deal difference to the comman man,it’s just a representation of the account details of the country and there’s no need to create so much hype about it as if it’s a patriotic event. But many analysts feel that budget making indifference to the comman man is a myth.

Way back in earlier days, the day prior to budget day, was the day when people filled their kerosene containers, speculating that the prices of kerosene may rise during post budget. But now, things are quite different. Now people discuss,debate, argue, and suggest upon the topics pertaining to the Budget, issues related to it, advantages and its repercussions.

The Budget 2010-11 basically aimed at rolling back the fiscal deficit and controlling the inflationary pressure. Now what do you mean by fiscal deficit? It’s the amount which the government needs to borrow to meet its expenditure, if the revenues are not sufficient.The budget aimed at 8-8.5% growth, 4% inflation and 12.5% nominal GDP growth.

Now let’s have a look upon some of the key implementations of Budget and its repercussions.

Automobile : Automakers experienced a hike in excise duty from 8% to 10% and to 22% for big cars. It is expected that the automakers would the hike the prices ranging from Rs3000-26000

Cement : Also, the rise in excise duty from 8 to 10%, would lead to the rise in prices of cement, thereby leading to an increase in the cost of road building.

Power : Increase in the price of coal would increase the cost of coal generation, thereby would lead to the increase in electricity bills.Also, Suzlon Energy and Shriram EPC would be beneficiaries as excise exemption has been announced on wind energy components.

Oil & Gas : The prices of petrol and diesel increased by Rs 2.67 and Rs 2.58 respectively and thereby have been the cause for untuning the pockets of comman man.

Taxation

There has been widening of tax slabs. The changes in the tax slab are as follows:

Tax Rate

Income

Income Exempt from tax

160000

10%

160000- 500000

20%

500001-800000

30%

800000 and above

MAT (Minimum alternate tax) has been revised from 15% to 18% of the book profits.

CENVAT was increased from 8 to 10%

The increase in excise can lead to an increase in the prices of consumer durables and FMCG goods. Gold and Silver prices set to increase due to an increase in the export duty by 2-3%.Aam Aadmi is quite unhappy with the increase in the price of Petrol and Diesel. Also, we can find that there is an ample widening of the tax bracket, there by increasing the propensity to save, but at the same there has been an increase in the price of commodities thereby acting as compensation to this wide tax bracket and increasing the propensity to consume.

Further, the fiscal consolidation is expected through disinvestment in public sector shares (Rs 40000 cr) and auction of 3G spectrum (35000 cr).Again, the budget 2010-11 was expected to control the inflationary pressure.It has claimed to control inflation to 4%.But with the increased excise duty, the price of commodities would be increasing, the inflationary pressure seems to be out of bound. Taking inflation into consideration some bold steps should have been taken with respect to the Agriculture spendings.In order to curb the inflation; this budget should have announced another green revolution as an important step towards development of supply side economy. With the increase in the prices of goods, the prevailing inflation is expected to increase. Again, this would lead to the short run measure i.e. tightening of monetary policy.Eversince, inflation has been tackled by tinkering the interest rates, so this was the high time to take some vice measures in the direction of agricultural development in order to get out of this vicious circle.

In general, as marked by many analyst and corporate honchos, the Budget turned out to be uneventfull.Some say that the budget was neutral, and some say that it was neither good politics , neither good economics


Wednesday, February 17, 2010

Who Knows??

Who knows there won’t be any field left out tomorrow?
So play the game today as you have never played before.
Who knows there won’t be any amphitheatre left tomorrow?
So perform your play today, the way you have never performed before.
Who knows there won’t be any stage left tomorrow?
So dance like nobody’s watching, as you have never danced before.
Who knows there won’t be any situation left tomorrow?
So make your confessions today, words that you have never said before.
Who knows there won’t be any ink left in the pen tomorrow?
So pen down your thoughts like you have never jotted down before.
Who knows your hope clashes with other’s hope tomorrow?
So live with your hope today, like you have never lived before.

Thursday, February 4, 2010

Mumbai Belongs to whom?


The recent statement made by Rahul Gandhi,‘Mumbai belongs to all’ has created an agitation among the Shiv Sena party.Because the ideology of Shiv Sena states that Mumbai belongs to only Maharashtra and Marathi people.
Mumbai, the most populous city in India, is one of the most populous cities in the world, with a population of approximately 20 million. Mumbai is the commercial and entertainment centre of India, generating 5% of India's GDP, and accounting for 25% of industrial output, 40% of maritime trade, and 70% of capital transactions to economy. In terms of actual GDP size and contribution to the all India GDP, Mumbai occupies the top position, followed by the national capital region Delhi, Kolkata and Chennai.
But the question still remains unanswered that Mumbai exactly belongs to whom? Is it so difficult to answer this very question. Lets do a one to one analysis, to judge the ownership of Mumbai.
The politicians who make these remarks about Mumbai. What can we say about their contributions towards Mumbai.Firstly, lets start with Shiv Sena,Shiv Sena since its inception, has come out with a virtual rule book.Now, following this rule book very religiously, they don’t allow youngsters to celebrate Valentine ’s Day. Also, they break out through violent agitations against the release of bollywood movies. Recently, there were oppositions upon the screening of Wakeup Sid in Mumbai,because
in the movie there was mention of Bombay instead of Mumbai. Also, the upcoming SRK’s movie My Name is khan is trapped in controversies. There are violent activities carried out by Shiv Sena against the release of this movie.Apart from these contributions, one of the most significant contribution was that of the divide of Shiv Sena and formation of a new party MNS under the leadership of Raj Thackeray.Since then this duo of Raj Thackeray and Uddhav Thackeray have given an immense contribution in the field of violence creation and impasse generation in Mumbai, in order to get the competitive advantage for their respective parties Every now and then, there is upheaval upon some or the other movie release, protests against north Indians or turmoil against any leader or celebrity making some statements. And then very safely they sail through all these agitations by hoisting the flag of Marathi manoos ideology.Its rightly said by Rajdeep Sardesai, that this is not we would call as lokshahi but something known as thokshahi.But unfortunately, these hullabaloos in no way contribute to the GDP of the country neither to the Economic development.
No, Mumbai surely doesn’t belong to All, it doesn’t belong to these venomous politician who are lightening their lamps of politics by burning the mindset of common man. Mumbai truly belongs to all those who really work hard and because of that hard work we reach those GDP figures.Yes,Mumbai belongs to those goods cart puller near CST and Dadar station,for whom the day starts even before the sun rises,it belongs to all the middle class people who sail through the rush of local trains to get to their work, it belongs to the talent pool of white collar jobs who have immensely contributed towards the development of Mumbai as a financial hub.All these people, irrespective of their cast, creed ,region and religion are the true owners of Mumbai.It’s the knowledge power, sweat and hard work of these people, that has made Mumbai, the commercial capital of our country.
I am a Maharashtrian, but I refuse to support this unscrupulous so called ideology of Marathi Manoos.Neither I am supporting people of any region, nor I am concerned about the predicament of the release of Bollywood movies.As in,even if the release of My name is Khan is delayed by few days, its not going To hamper the bread butter of comman man.Whether the feud is between Raj Thackeray vs Uddhav Thackeray or between SRK vs Sena, it’s the common man who suffers.Whenever, these tribulations occur,the means of transport are either cancelled or the roads are being blocked, thus creating a chaotic situation for the people to reach their offices.

Ever since, why the politics in India has arisen by playing with the mindset of people and this play of mindset is prevailing not only in Maharashtra but in all the states. After 62 years of independence and after the divide and rule policy of Britishers, we ought to witness the divide and rule game of our politicians. I think the former were ineffective as compared to the latter, because when Britishers ruled India, India was lagging behind in education, technology and globalization. But today, inspite of so much of tech-savvy world and socio-economic development in India, these politicians have the audacity to play and divide the mindset of people. Wouldn’t we term this as efficiency?
Mumbai has been a city of eventful activities, be it a bollywood buzz, natural calamity or terrorist attacks. In all these years Mumbaikars had survived through the devastating floods and the N series of terrorist attacks. And now they ought to face this unfair political game of the politicians. Let’s see, if Mumbaikars are successful in thwarting these elements responsible for hindering the cosmopolitan spirit of Mumbai.Let’s see whether any XYZ claims the ownership of Mumbai, or the true owners decide upon this,that Mumbai belongs to whom?