Union Budget and Economic Survey of India

Details on India's Union Budget for year 2005-2006 and Economic Survey for year 2004-2005.

Update (03/04): Chetan Ahya and Stephen Roach at Morgan Stanley are not impressed. More later.

Update (03/10): IMF Country Report on India (pdf file):

1. The five papers presented here paint a picture of an Indian economy that has made great strides, but has more to do to accelerate growth and reduce poverty.
2. Growth has been solid for a number of years, but a move to a permanently higher growth path—as envisaged by the Indian authorities—is not yet assured.
3. The service sector has led India’s growth, and its success provides valuable lessons for economic policy more generally.
4. India is poised to become a major destination for foreign direct investment, but broad reforms are needed.
5. Tax reform can help generate needed fiscal adjustment, while contributing to higher growth.
6. Finally, for the recent recovery in private investment to take hold, the financial sector will need to play more fully its key intermediation role.

I am yet to read this report fully, so I have no comments to offer.

Comments

[Himanshu Agrawal]

Dear Finance Minister,
Don't you think that teh Government/semi government/PSU employees are taxed heavily at the present rate of income tax as they do not have any spoke for hiding their incomes.
Businessmen are allowed to deduct their expenses related to the business while as service class persons do not have such opportunity.Even the standard deduction allowed earlier has been withdrawn,which should be reintroduced.
A flat rate of tax say 15% can be levied to the service class on their income.Encashment of earned leave,a facility provided by some employers during the service life shoul be kept out of tax net because an employee looses his credit for the earned leaves in lieu of encashment.
Please examine the same.
Thank YOu.