Pranab Mukerjee presented the budget for the current fiscal year yesterday and it appears to have something for everyone. Expenditures rise by about 35% with the stated goal of halving poverty over the next several years. Thefiscal deficit — the gap between its revenue and expenditure — is expected to balloon to 6.8 per cent of GDP compared to just 2.7 per cent in 2007-08.
Of interest to Western companies, defence spending is also expected to rise by over 30%, echoing a trend indicated in the “interim budget” presented a few months ago.
Corporate India gets some relief with the removal of the “Fringe Benefits Tax”, which is a kind of tax on expenses; foreign companies will appreciate this.
The government’s official highlights are listed here. http://indiabudget.nic.in/ub2009-10/bh/bh1.pdf
Posted on July 7th, 2009 by Gunjan
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