tag:blogger.com,1999:blog-19649274.post114121550032698297..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Budget speech 2006Ajay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-19649274.post-1141997897610670042006-03-10T19:08:00.000+05:302006-03-10T19:08:00.000+05:30A core principle of public finance is: You do not ...A core principle of public finance is: You do not tax transactions. Long chains of specialised transactions are the essence of modern capitalism. Penalising transactions is synonymous with penalising efficiency.<BR/><BR/>JRV has a good set of postings on the STT subject.Ajay Shahhttps://www.blogger.com/profile/03835842741008200034noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-1141328174551820222006-03-03T01:06:00.000+05:302006-03-03T01:06:00.000+05:30three things:1. a major positive which i learnt in...three things:<BR/><BR/>1. a major positive which i learnt in that meet was the fact that pc talked about year-round-reforms. he has asked FICCI to submit proposals on how to make manuf sector grow @ 12% and says he might amend the finance bill sometime in the later months. "no need to creat much hoopla over february 28th, why not have reform policies all year round" !<BR/>2. ppl suggested that as far as expenditure on infra was concerned, we may agree to exempt it from the 3% (or whatever the no. is) FRBM fiscal deficit constraint. not many were happy over spending rate on education (only 3.5% of gdp) and infra projects (a lot of numbers were given... but as you said.." the devil is all in the execution" :) )<BR/>3. i think this was a typical 'continuity' budget. not very positive. not very negative. just right. i believe that those who say that we may have missed out on a big opportunity towards reforms for a 10% growth might not realize that we are in a democracy and the greatest growth rates of over 10% have only been observed in either the Lenin-Era or in China. A higher growth trajectory may just be wishful thinking. then again it might not be. :)Ankur (THE consultant)https://www.blogger.com/profile/12116610700551596475noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-1141327748189718722006-03-03T00:59:00.000+05:302006-03-03T00:59:00.000+05:30i attended the FICCI post-budget analysis at BSE w...i attended the FICCI post-budget analysis at BSE where ajit ranade (aditya birla group) and others (mastek chief, kpmg tax people) were on the panel. Ajit raised an interesting point about the STT, saying that it is probably one of the more "transparent" taxes around. and since you have to increase tax/gdp anyway better do it via more "transparent" methods. i told him about your efficiency argument. he didnt really buy it.Ankur (THE consultant)https://www.blogger.com/profile/12116610700551596475noreply@blogger.com