Budget 2008 : ‘Populist Budget’ say the finance heads of Indian industry as per PricewaterhouseCoopers Opinion Poll

New Delhi – 1 March 2008: On the surface, this year’s budget appeared to be populist budget keeping in view the forthcoming elections, as per a opinion poll carried out by PricewaterhouseCoopers in Delhi, Mumbai and Bangalore on 1 March 08. There were over 600 attendees at the PricewaterhouseCoopers Budget Analysis seminars, attended by chairmen, chief executives, managing directors, chief operating officers, financial directors, chief financial officers and non-executive directors for some of India’s largest businesses.

Dinesh Kanabar, leader tax practice, PricewaterhouseCoopers, said, “Whilst it was always expected to be a populist budget, the key question has been whether the political compulsions would override economic reforms. As the budget unveiled, the FM has done the tight ropewalk with a fine balance by pleasing the aam aadmi and yet not burdening the exchequer significantly.”

As per PricewaterhouseCoopers Opinion Poll:
The industry captains were at odds on the question as to whether Budget proposals stimulate a high growth economy.
The Budget did not address the expectations of infrastructure development
The opinion was not in favour of an increase in rate of short term capital gains
Overall, when the budget proposals are looked at in the context of industry and current global scenario, there are mixed views about the true benefit that the same will bring.


ENDS


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Notes to Editors:
Respondents were asked the following questions:

  • Budget 2008 could have pursued economic reforms further.

Yes 89%
No 11%
  • Budget 2008 has taken meaningful steps to promote growth with low inflation.

Yes 45%
No 55%
  • Budget 2008 contains significant measures to make India Inc. globally competitive.

Yes 38%
No 62%
  • Budget 2008 has taken meaningful steps to address infrastructure problems.

Yes 5%
No 95%
  • The increase in short term capital gains tax is justified

Yes 24%
No 76%

  • Budget 2008 has a positive impact on broadening the indirect tax base

Yes 71%
No 29%
  • Budget 2008 is positive for industry as a whole.

Yes 51%
No 49%


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