Monday, March 10, 2008

The adjustments in the income-tax slabs have been taken as revenue neutral.

Unfortunately, FRBM is not a fiscal transparency Act

Fiscal deficit really amounts to 3.11 per cent of GDP, not 2.5 per cent as professed. Surprised? "Don't be, as these are fiscal costs of budgeting for elections," explains Dr D. K. Srivastava, Director of the Madras School of Economics, in a tˆte-…-tˆte with Business Line, a few hours after the Union Budget 2008-09.
While we regale amongst the newfound tax incentives doled out by the Union Finance Minister on February 29, it may be worth sparing some time to look at the financial health of the Government itself, stirring up the `everyday economist' that resides within each of us.

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