India’s union budget of this year will be released on 26th February. Why there is significance to this ? If I would go on exploring these things and track the news trails, I would get more clear picture. This budget is going to decide where every penny will be spent and from where it is coming into government treasury. Every individual from Industry leader and entrepreneur to common man is going to be affected by this budget. Finance minister Pranab Mukherjee would be busy in these days for making some crucial changes. I hope there would not be complete change in government policies, but few are really required to tackle the inflation and to maintain the GDP growth rate of 9 % persistently.
I think, inflation is unavoidable. Food prices cannot be reduced as cost of farming has increased. Prices of crude oil and natural gases are also increased globally. Global price of crude oil is more than USD 100 per barrel. Import duties over petroleum and crude prices can be reduced.
Tax system of nation gives money to government. This is also an effort to reduce the wealth inequality. Last year, Lower limit of taxable income has raised to 1.6 lakhs. This year, it is expected to raise the tax exemption limit to avoid the impact of inflation over the common man. Changes in the tax schemes on small scale industries are unpredictable. Government is supposed to encourage public as well as private investors in small scale industries.
During the time of global recession, GDP rate has slipped to 6.8 percent in 2008-09 from previous years. It again raised at 8 % next year (i.e. 2009-10). This coming year, India would keept the target of achieving GDP rate of 9 percent.