Continuing the tradition, a Discussion on Union Budget 2010-11 was organized by T A Pai Management Institute (TAPMI) on 5th March, 2010. Finance Forum of TAPMI with support of the faculties, staff members and students was instrumental in making the event a grand success. Among the panelists were Prof Avinash Paranjape, Mr. K. Ananthanarayan Pai who is a CA and Prof Rajiv V Shah. Prof Paranjape gave macro economic implications of the budget. Mr. K Ananthanarayan Pai gave a detailed insight of the Tax Proposals made in the budget 2010 and Prof Rajiv V Shah gave a briefing about the Direct Tax Code (DTC) and Goods and Service Tax (GST) code.
Prof Paranjape started off the discussion by saying that the budget has undergone a huge change from a mere accounting exercise in 1980’s and 90’s to more of a strategic and policy oriented. He stressed on the failure of the past budgets in the inclusion of all the sections of the society. The bottom 25% of the population is always being bypassed by the reform policies and measures. He put forth the question, “What can be done to make the government deliver what it intends to deliver?” According to him, significant thrust should be on the social sector projects to create income generating capacity. Projects like NREGA should not be looked as a Revenue Expenditure projects as substantial amount goes towards building capital assets which boosts the economy in the long-run. Prof Paranjape was of the view that the current budget is mainly inflationary. He emphasized that Finance Minister has done a balancing act by giving a deep cut in expenditure growth and giving more disposable income in the hands of people.
Mr. Pai began his speech with a beautiful story to emphasize that Capitalism is the way forward. He gave a 360 degree view of how the ever accumulating deficits will pose a serious threat to the future of the economy. Appreciating the amendments made in the current law codes to allow conversion of closely held firms to LLPs, he said the move will be buoyant for the economy and bring in uniformity in taxation.
Prof Rajiv Shah said that the union budget 2010-11 was mainly a “status quo” kind of Budget. He said it is a sort of an intermediary budget before DTC gets implemented in 2011. He also laid emphasis on the fact that DTC is mainly doing away with the exemption to remove the previous anomalies and make things simple.
The session was followed by a short question answer session with audience posing a myriad of questions to the speakers. The question answer session was followed by a vote of thanks and awarding the speakers with a token of appreciation.
– Finance Forum