Budget 2007

The Finance Minister's budget speech is probably one of the biggest political events in the country. It is in many ways similar to the State of the Union address in the USA, as far the media hoopla involved goes. I have a long way to go in terms of understanding the terms that determine how good a budget is, such as fiscal consolidation, revenue buoyancy, gap funding. However, here's a brief list of some straightforward aspects of the budget:

• The threshold limit of tax exemption has been increased by Rs. 10000.
• Defence spending has been increased by around 7%.
• There's a reduction in duty on certain imported goods such as pet foods!!!! So if you were importing your dog's dinner, well it has gotten cheaper.
  
• IT companies are not very happy as the tax holiday that they currently enjoy and which expires in 2009, has not been extended.
• Nothing commendable on the infrastructure front, the Golden Quadrilateral is scheduled for completion by 2009.
• Nothing worth mentioning on the education front either.
• A few populist schemes have been announced such as "Aam Aadmi Bima Yojana", which provides death and disability insurance cover to rural landless households, through LIC. The government proposes to pay 50% of the premium. But as with many populist schemes that are announced every year, don't be surprised if it is not impemented to fruition.