‘Manthan 2014’ is a Budget Analysis session of the Union Budget 2014-15, which was organized by the Finance Forum at TAPMI on July 12, 2014. The panel discussion was attended by finance professionals from industry, academia, faculty and students to discuss and analyze the implications, challenges and the opportunities of the Union Budget of 2014-15.
The panelists for Manthan 2014 included eminent personalities from the world of finance and academia. They were Dr. G V Joshi (Member of Karnataka State Planning Board), C. A. Y. Ganesh (Senior Chartered Accountant) and Prof. Avinash Paranjape.
The panel discussion commenced with Dr. G V Joshi speaking about the Budget 2014 and its implication on growth and development. He started by comparing the current Budget with the earlier budgets. He was of the opinion that the current Union Budget had sufficient measures to expedite the growth rate. However, he also felt that it was too optimistic and need of the hour was to generate growth impulses, for which realism was the best approach. He highlighted with supporting facts that at present, generating growth impulses in Agriculture and service sector was not possible. “Green shoots are present, provided we seize the available opportunities” said Dr. Joshi. He specifically talked about the role Manufacturing sector could play to create more jobs as all manufacturing companies are looking for opportunities in India due to increase in Labour costs in China. He threw light on many initiatives that were mentioned in the current budget to supplement the growth of manufacturing sector. He also cautioned the gathering that everything was not perfect in the current Budget and that there was an element of populism in it. He concluded his talk with the opinion that populist measures were not good for the growth of the nation.
The second speaker in the panel was Prof. Avinash Paranjape who gave a macroeconomic perspective of the Union Budget. Prof. Paranjape thought that the budget was fantastic at first look with lots of money allocated to building infrastructure, SEZ etc. But then, he wondered how the government is going to gain the sufficient amount of money to make its proposals a reality. He highlighted that the current macroeconomic situation had twin deficits: Current account and the fiscal deficit. Worse, the economy had a continuing primary deficit and also the international confidence was low. So he was unable to gauge where the money was going to come from. Government also has a fiscal deficit target limit of 4.1%. Under these situations there will be accelerated borrowing from the government. Hence, he believes that the government expectations are far from reality.
The third and final speaker in the panel discussion was Mr. C. A. Y. Ganesh. He elaborated on the tax perspective of the union budget 2014-15. He explained in detail the various changes made in the tax structure and its implications. Mr. Ganesh opined that the present budget gave importance to manufacturing sector. He also explained the new concepts that found its way in the current budget like real estate investment trust and alternate minimum tax.
‘Manthan 2014’ ended with discussion on questions been taken up from the audience. The panel discussion enriched the audience by giving them various dimensions of the Budget 2014-15.