Union Finance Minister P. Chidambaram has not made any serious effort for maximising resources development in the Union Budget for 2013-14, said V.B. Athreya, Economist and Advisor, M.S. Swaminathan Research Foundation here on Thursday.

Participating in a round table on the Budget jointly organised by Shanmugha Arts Science Technology and Research Academy (SASTRA) University and The Hindu Business Line, Athreya said that there was no direct tax effort, no respite from inflation and little stimulus for growth in the Budget.

“Praying for foreign capital to bail us out is not a sensible option,” Athreya said.

Chidambaram has pronounced growth as the highest goal. But quality of growth also should be taken into consideration. Aarati Krishnan, Research Head and Deputy Editor, The Hindu Business Line , said that the Union Budget is not a mere statement of accounts and it is an exercise in which Government explains its policy.

Some of the highlights of this Budget are taxing the rich, widening the tax net and providing affordable home to people. “But this cannot be called a great budget” as challenges are more.

T.T. Srinivasa Raghavan, Managing Director, Sundaram Finance Ltd, said the western model is blindly copied in the budget exercise in India. When we talk of demographic dividend, it may turn out to be a “demographic timebomb” if we don't provide jobs to youth who are graduating in large numbers every year. R. Anand, Partner, Tax and Markets, Ernst and Young Pvt Ltd, said that over a period of years, there is substantial buoyancy in tax paying.

Another feature is direct taxes which stood at 18 per cent in 1992-93 have now reached 52 per cent. Indirect taxes are coming down. “Dynamics of taxation is undergoing change”. He also said that the Finance Minister had not announced any measure to retrieve black money which was put at Rs 25 lakh crore two years back.

“If 20 per cent of this money is retrieved, we can enjoy tax holiday for an year,” he said.

Anand also suggested that people should be involved in budget making. A draft could be prepared and circulated in December or January to people and get their opinion.

This is being done in countries such as New Zealand. “Now in India it is between the industry and government, i.e. You and Me. We should make it “We” budget involving people,” he said.

S.Vaidhya Subramaniam, Dean, Planning, SASTRA University, welcomed the gathering.

Related Topics