By Accommodation Times Bureau
Finance Minister Pranab Mukherjee has tried to focus on all the issues of nation but for certain sectors there is good news and some are still having questions about the union budget. Government has also tried to exempt tax but again increase the service tax from 10% to 12%. This budget has many pros and cons related to tax but increase in service tax will affect in every day to day routine of a common man. “Government has also increased an infrastructure spending which is a good side for development. Economy to grow at 7.6% in 2012/13 according to Mr. Pranab Daa, and today also have several employment opportunities across the country but the inflation rate & corrupted policies and ministers makes us to believe that “India stands on the brink of a recession” but it’s only the state of mind,” said on reacting union budget Raj Sharma, Co-Founder & President of Majestic MRSS, Global Market Research Firm.
Sharma also said that, “there are factors which would support inflation rather than recession. FM has increased the burden of indirect taxes on the industrial sector.” This sector was already fighting against high prices of raw materials registered lower growth as compared to last few years. The burden of taxes will further reduce the growth in this sector. The increase cost of production will increase the prices of goods hence increasing inflation. Furthermore, the increased exemption limit will benefit the tax payers by increasing their disposable income, this would add to the inflationary pressure.
The only factor that needs to be controlled is depreciation of rupee against dollar to overcome chances of recession.