Union Budget 2012

[Iamanidiot]

@Sob does this mean there s no more moneu for all the sops proposed by the NAC.Pranab cannot go the lengths to piss the corporate lobby

 

[sob]

JP, If the fuel and fertiliser subsidies are not controlled, then the Govt. would be pretty much running on empty. they need to announce policies which will give a feel good factor to the corporates as well as the general public.
The new equity scheme is a very good idea, it will bring a large amount of money in the market and might revive the mutual fund industry in India. This will in turn help the Govt. in the disinvestment of PSU stakes- Rs. 30,000 Crores are stuck here.

I had missed this in the budget. FM has proposed that there will be a start up tax of 30%.

he Union Budget 2012 has introduced a new clause which will treat all individual investments including genuine angel money in a company as "income from other sources," and these will be subject to a tax of 30 per cent at the hands of the companies including all genuine startups. The move has attracted wide criticism from various corners, as it impacts the still nascent but growing startup ecosystem in India.

Source: http://techcircle.vccircle.com/500/...ottleneck-for-first-generation-entrepreneurs/

 

[Iamanidiot]

JP, If the fuel and fertiliser subsidies are not controlled, then the Govt. would be pretty much running on empty. they need to announce policies which will give a feel good factor to the corporates as well as the general public.
The new equity scheme is a very good idea, it will bring a large amount of money in the market and might revive the mutual fund industry in India. This will in turn help the Govt. in the disinvestment of PSU stakes- Rs. 30,000 Crores are stuck here.

Add to that the welfare schemes I don't see Congress having the money to sustain all the welfare schemes

 

[sob]

Difficult days ahead. My advice is to save money and maintain liquidity.

 

[H.A.]

The whole Budget and the figures are based on many premises, most of them out of control of Pranab Da. One by one the fiacts and figures and forecasts are being knocked down,
The latest being the whoping amount of Rs. 40,000 crores from 2 G spectrum. With the courts involved in it, this money might just slip away from this fiscal year.

4G auction before 2G? FM's earnings math suggests so | Firstpost

Who is interested in 2G??? why will the telecom companies pay hefty amount to buy an old technology, doesn't make sense to me.

 

[H.A.]

JP, If the fuel and fertiliser subsidies are not controlled, then the Govt. would be pretty much running on empty. they need to announce policies which will give a feel good factor to the corporates as well as the general public.
The new equity scheme is a very good idea, it will bring a large amount of money in the market and might revive the mutual fund industry in India. This will in turn help the Govt. in the disinvestment of PSU stakes- Rs. 30,000 Crores are stuck here.

I had missed this in the budget. FM has proposed that there will be a start up tax of 30%.

How do you expect a new company to bear that.

Lets take the minimum calculations, If i invest :inr: 1,00,000/= in a company called "x". The "x" company will have to shell out a flat 30% that is :inr: 30,000/= :shocked:

He just has :inr: 70,000/= to spare for other start - up expenses like, furniture, telephone connection, computer, broadband connection, and most importantly a place to do business for which he will have to shell out an advance as demanded by the owner. Even more importantly he has to invest in the initial material / stock to attract / sell to his customers

How do you expect a first time businessman to start a business?

 

[nitesh]

worth full read:

Business Line : Columns / C P Chandrasekhar & Jayati Ghosh : The great fuel subsidy hoax

 

[sob]

Who is interested in 2G??? why will the telecom companies pay hefty amount to buy an old technology, doesn't make sense to me.

This is the auction for the 122 licences cancelled by the SC. An interesting thing is that now the Govt. is expecting Rs. 40,000 Crs while earlier when the scam had unfolded, then Kapil Sabil had called it a zero loss. So now you have an official figure of Rs. 40,000 Cr. as the 2 G loss.

 

[sob]

How do you expect a new company to bear that.

Lets take the minimum calculations, If i invest :inr: 1,00,000/= in a company called "x". The "x" company will have to shell out a flat 30% that is :inr: 30,000/= :shocked:

He just has :inr: 70,000/= to spare for other start - up expenses like, furniture, telephone connection, computer, broadband connection, and most importantly a place to do business for which he will have to shell out an advance as demanded by the owner. Even more importantly he has to invest in the initial material / stock to attract / sell to his customers

How do you expect a first time businessman to start a business?

See all these negatives in the budget were hidden in small print and are slowly coming out. This is nothing but a penalty on start up companies.

 

[sob]

There was on the face of it an attempt to misguide the public on the budget

Budget 2012: No-surprise budget comes with shocker in fine print - The Economic Times

Every year's budget supposedly has a common tax theme that runs through its veins. While listening to the finance minister's speech, one could be forgiven to think of budget 2012 as a budget with "no surprises" for it had all the familiar tell-tale signs of minor tinkering and expected across-the-board indirect tax rate changes.

What one had not bargained for is the tsunami of epoch-making proportions contained in the fine print and some of which did not even merit a cursory mention in the FM's two-hour-long speech.

 

[sob]

worth full read:

Business Line : Columns / C P Chandrasekhar & Jayati Ghosh : The great fuel subsidy hoax

I have stated this before also, based on absolute PPP we Indians are paying one of the highest rates of Fuel in the world. Also a product whose retail price comprises 50 to 60% Tax amount, how can it be subsidized. This is the biggest hoax being played on the people of India.

 

[Mad Indian]

MadIndian,

Putting people on the dole was never the answer to any problem. Once you get them hooked on to free dole then they will never venture out to do do any work to earn money. Dole is like drugs in your bloodstream, once you get hooked on you are finished.

The job of the Govt. is to create employment generating opportunities for the people. Dole at best is a temporary solution to address the immediate and short term situation.

Sir you are very bad getting in the satirical meaning . Seriously, read to what i have replied to that

I am a right winger in its true form , who believes in pure free market economy. It was TW and LB who brought Gini here. So i pointed out to them how idiotic that Gini index is and a stupid suggestion to lower the Gini index, which is not very different from what the govt is doing right now- Tax the working population(rich) and dole it out to the poor(or in my view, Lazy). Please understand what i meant.

This is the second time you are quoting me, without understanding my point.

 

[Mad Indian]

Income equality is a critical part of social stability and growth. I will leave it at that.

You cant make two things which cant be equal as equal. You cant equalise the salary of a IAS officer and a bike mechanic. Or will you be ok with getting the same salary of an office peon, when you are a manager since you want social inequality

I rest my case:taunt1:.

 

[sob]

Sir you are very bad getting in the satirical meaning . Seriously, read to what i have replied to that

I am a right winger in its true form , who believes in pure free market economy. It was TW and LB who brought Gini here. So i pointed out to them how idiotic that Gini index is and a stupid suggestion to lower the Gini index, which is not very different from what the govt is doing right now- Tax the working population(rich) and dole it out to the poor(or in my view, Lazy). Please understand what i meant.

This is the second time you are quoting me, without understanding my point.

I apologize if I have not understood your point and have replied in haste.

 

[Mad Indian]

I apologize if I have not understood your point and have replied in haste.

No need for apologies sir.. just know that we are on the same side

 

[nitesh]

see how the chorus of de regulation is getting louder without even discussing on the tax structures

Can India afford fully free oil prices? - The Economic Times

 

[sob]

This was something that the FM did not highlight in the budget-- CAD ___ Current Account Deficit

This is the net difference between imports and exports and it also takes into account the remittances from NRIs. We are looking at a figure of 4.3% if the GDP. for the quarter ending December 2011. Unless exports do pick up drastically and Investment comes in from Foreign Investors we will see CAD remaining very high and this will in turn put more downward pressure on the Rs. leading to higher inflation. With the Govt. applying Tax laws with retrospective effect for the last 50 years we can say goodbye to Foreign investment.

Why Rahul-flation may get more virulent, helped by CAD | Firstpost

 

[sob]

The backlash against the Retrospective Tax law is now increasing. In a rare sight different business chambers from US, Europe and Japan have written an open letter to the PM highlighting this issue and they have hinted that this would have an adverse impact of Foreign investment in India.

Tax changes: No more foreign investment for India? | Firstpost