Union Budget 2011: FM has done a remarkable job of focusing on growth, says Sanjiv Goenka, Vice chairman, RPG Group

Mr Sanjiv Goenka, Vice chairman, RPG Group gives his take on Union Budget 2011.

Budgeting for the country’s second largest populated country is not an enviable task. In a year of very strong challenges, the finance minister has done a remarkable job by focusing on high growth and making the growth inclusive in building a resilient economy. Mr Mukherjee’s guiding principles of modernization and simplicity in taxes are commendable.

The whole thought of rationalizing subsidies by actually identifying the end-users will help plug loopholes.
The finance minister has tried to touch almost every aspect of our life. Particularly welcome is the cut in tax surcharge for companies from 7.5% to 5%. Also welcome is the foreign dividend tax rate cut to 15% for Indian companies.

While further tightening tax collection measures, the finance minister has rightly exempted from audit all small tax payers and small business own-ers with revenue of up to Rs 60 lakh.

The introduction of the direct tax code from 2012, the announcement to reform the APMC Act, self-assessment in customs extending exemption for infrastructure in cold chain and maintaining excise duties at 10% are very positive steps. The reduction of fiscal deficit to 5.1% is also com-mendable. All in all, it is a very matured, very balanced and a pro-growth budget.