Govt of India awaits more then half of fiscal deficit from disputes

Believe it or not the government is yet to receive over Rs one trillion in taxes from corporate and other entities and add to it other arrears worth about Rs 47,000 crore, the total outstanding equals more than half of the total revenue deficit this year.

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Budget 2009-10 highlights

At about Rs 150,000 crore, the unrealised tax and non-tax revenue is 53 per cent of the total revenue deficit of over Rs 282,000 crore projected by Finance Minister Pranab Mukherjee in his Budget for 2009-10.

The arrears outstanding at the end of reporting year 2007 -08 pertain to a period of up to ten years or more and also include interests from state governments and PSUs.

In totality, the arrears that the government is still awaiting are held up in litigation, or are due for some other reasons. If realised, they could have substantially reduced the Centre's borrowings, pegged at over Rs 4,00,000 crore for the current fiscal.

Bulk of the tax arrears is caught under disputes and amounts to over Rs 64,000 crore, while the amounts not under dispute total at about Rs 40,000 crore also include cases pending for adjudication.

Indian Budget Projections shattered by US economic recession

Indian budget projections are likely to be shattered by the slowdown in US economy or probably it's recession and government has to make new projections keeping the condition of US economic changes in mind becoz indian economy is governed more or less by US economy, CPI(M) on Saturday demanded immediate halt to futures trading in all essential commodities to contain inflation and corrective measures for the stability of the rupee.

"In order to check speculation and inflation, futures trading must be stopped in all essential commodities though the government has removed pulses, wheat and rice from the purview of forward market due to our pressure," CPI-M Politburo member Sitaram Yechury described.

Stating that the US has officially admitted that its economy was going through rough times, he said, recession, falling value of Dollar and growing unemployment in America would have adverse impact on India and the government must initiate corrective measures to tackle the situation.

Observing that Rupee has appreciated by 13 per cent during the past one year, he said decline in exports and manufacturing sector coupled with badly hit IT and textile sectors would cause considerable loss of jobs.

He said that such a situation has put the projections in the union budget into uncertainties.

It may also be noticed that CPI(M) are also against the nuclear deal and want the indian government to abundan it, they are organising a meeting to discuss the Indo-American nuclear deal on 17th of this month in delhi with government officials.

General Union Finance Budget 2008-09

General budget for the next financial year is just a month away and already finance minister is busy with meeting all the top corporate houses and would want to make them happy and tax payers would be skeptical about the union budget.
Many questions and obstacles are in the way for continuing with the same growth rate next year.

And it looks like the finance minister is in no mood to cut the tax rates. However more emphasis would still be given to agricultural sector as always which is shattering day by day.

so what do you all feel about the general budget for 2008-09 . post your comments about what you want and what a normal middle class individual want from this budget.

However RBI has not changed any of the interest rates which has dissappointed the banks but finance minister replied to media persons that there is enough liquidity in the market and banks should encourage more loans. However a borrower should prepare himself to pay higher interest rates on the loans they get from bank.