BUDGET SUGGESTIONS

BOLD INITIATIVE NEED OF THE HOUR INSTEAD OF INCRAESING DEBT BURDEN


PERSONAL TAXATION
IT EXEMPTION THRESHOLD LIMIT SHOULD BE INCREASED TO 2 LAKHS WITH SUITABLE ADJUSTMENTS FOR WOMEN/SENIOR CITIZENS TO SAVE FROM THE RUN AWAY FOOD INFLATION AS THE EXPENDITURE HAS GONE UP BY MORE THAN 60% SINCE 2008

BOOSTING REVENUE
STIMULUS PACKAGAE ANNOUNCED DURING 2008-09 MAY BE WITHDRAWN COMPLETELY TO THE LUXURY SECTOR AND PARTIALLY TO TRANSPORT AND OTHER SECTORS THE FISCAL DEFICIT IS AT THE PEAK SINCE INDEPENDENCE BECAUSE OF THE OVER ALL INCREASE IN BOTH PLAN AND NON PLAN EXPENDITURE

SPECIAL ADVALOREM TAX ON LUXURY IMPORTS CAN BE INTRODUCED AS A REVENUE RAISING MEASURE THE LUXURY SECTOR CAN ABSORB IT

NO FRESH CONCESSIONS NEED TO BE ANNOUNCED IN EXCISE DUTY REVNUE NEUTRAL/NO SACRIFICE ON EXISTING REVNUUES

POSTOPONING FISCAL DEFICIT

IMPOUNDING OF ADDITIONAL DEARNESS ALLOWANCE BY AT LEAST 50% TO THE PUBLIC SECTOR/ GOVERNMENT SECTOR PAYABLE WEF 01 JANUARY 2010 AT LEAST DA WILL GO UP BY 15% OF THE REVISED SCALES DURING THIS YEAR AND IMPOUNDING 50% WILL HAVE A IMPACT BOTH ON THE MONEY SUPPLY AND POSTPONING IF NOT PRUNING FISCAL DEFICIT NOT ONLY TO CENTRAL GOVERNMENT BUT ALSO RELIEF TO STATE GOVERNMENTS

SAVING STIMULUS

A BOLD INITIATIVE CAN BE TAKEN BY OFFERING A HIGHER COUPON RATE OF 9 % INTREST FREE INFRA STRUCTURE BONDS FOR A MATURITY PERIOD OF 10 TO 15 YEARS BANKS CAN ALSO ISSUE THIS TYPE OF BOND FUND COLLECTED CAN BE EXEMPTED FROM CRR/SLR REQUIREMENTS MUCH RELIEF TO FIXED INCOME HOLDERS AGAINST THIS RUN AWAY FOOD INFLATION

BOLD STEP TO EXEMPT INTEREST INCOME

GOVERNMENT AT ONE STROKE CAN TOTALLY EXEMPT INTEREST ON DEPOSITS FROM APPROVED FINANCIAL INSTITUTIONS LIKE BANKS NBFC ETC AND INSTEAD CHARGE TO START WITH 5 % OF THE INTEREST PAID BY BANKS BASED ON THEIR BALANCE SHEET AS INTEREST TAX TO OFFSET THE LOSS IN REVENUE FORM 15G AND 15 H CAN GET GET AUTOMATICALLY ABOLISHED SO THAT THE DEPARTMENT CAN USE THE SCARCE MANPOWER ON BIG TICKET RETURNS BANKS CAN BE ASKED TO ALIGN THE RATES SUITABLY OR TO ABSORB THE EXPENDITURE

SALE OF GOLD THROUGH BANKS TO RETAILERS

GOVERNMENT CAN IMPORT DUTY FREE GOLD THROUGH NMDC OR PERMIT GOLD IMPORT BY BANKS OR OTHER BODIES AND MAKE AVAILABLE TO THE PUBLIC AT THE RATE ATLEAST 10% BELOW THE MARKET PRICE CRORES OF MONEY CAN BE AVILABLE FOR DEVELOPMENT PROJECTS GOVERNMENT CAN USE FOREIGN EXCHANGE RESERVES FOR IMPORT OF GOLD. THIS IS NON INFLATIONERY BECAUSE MONEY SUPPLY IS GETTING CURBED OF COURSE SUITABLE METHOD TO BE EVOLVED FOR SMOOTH SALE AND REACHING RETAILERS


PETROLEUM PRODUCTS

PRICES SHOULD BE DECONTROLLED FOR KEROSENE AND COOKING GAS SUBSIDY CAN BE MADE AVILABLE TO THE BPL SECTION BY INTRODUCING CASH VOUCHERS TO BE EXCHANGED FOR KEROSENE SUBSIDY SUITABLE MECHANISM TO BE EVOLVED