Finance minister of Orissa At XIM for budget analysis session

PaGaLGuY.com News Service

19 years ago

The Hon’ble Finance Minister Mr. Ghadai shared his views on the Union Budget at XIM. He felt there was a lack of proper strategy to achieve 8% consistent growth in the budget. This kind of growth requires consistent growth of 3-4% in the agriculture sector which can be achieved if states are given grants for enhancing the same.

He also said that there was no major new programmes initiated only some modifications and re-christening of schemes which were introduced by our respected ex-Prime Minister Mr.Vajpayee’s government. He had expected that there would be some outlets for the States which are lagging behind to remove the existing disparity among states but he was disappointed on these grounds. He also felt dejected as Orissa even though possessing the 2^nd largest coal reserves (40000 mn tons after 60000 mn tons of Jharkhand) and port facilities and location advantages, was not a part of the Mega Power Project.

He also gave some insights into the State budget he had presented. He seemed positive for Orissa’s future as a large number of industries are entering into the state, with 13 already started producing and 7 soon to begin.

XIMB had an informed and diversified panel consisting of Mr. Anil Ratanpal, General Manager IDBI, Mr.A.K.Sabat, Chartered Accountant and Mr. Dillip Satpathy, Journalist. The moderator for the evening was Dr. D.V. Ramana, Professor in Finance Department of XIMB.

Dr.D.V.Ramana

put some concerns for the panel to address to. Firstly he felt that it is very important to have inflow of investments and also efficient use of the same to have 8% growth. These inflow of investments are 72% from revenue receipts alone and tax contributes 58% in that 72. The loan and interest payment form 26% of the budget where the major part of loan is repaid as interest alone, so is it worth taking those loans. Mr. Anil Ratanpal suggested that there are hardly any major changes in the budget. He felt this budget didn’t have negative impact on maximum industries. To conclude he said that it is a continuing budget, primarily growth oriented, pragmatic, rooted with objective of achieving the growth rate and economic reforms.

Mr. D. Satapathy said the direction of this budget was 3 fold, growth, equity and social justice. He spoke about the impact of the budget on major industries. He rounded off by saying “How will you balance your budget overnight, put tax on sales.”

Mr.A.K.Sabat was the last and most humorous speaker who spoke on direct taxes and gavean insight from a point of view of a chartered accountant. He said that he views a country like a company whose Chairperson is Mrs. Sonia Gandhi, MD is Dr. Manmohan Singh, Director of Finance is Mr. P.Chidambaran, supported by Mr.Montek Singh Ahluwalia. He quoted Benjamin Franklin “Nothing is certain but death and taxes.” Mr. Sabat went to meticulous evaluations of various provisions and their loopholes. He discussed from the reasons black money had started circulated in the markets in India to the high margin in unorganized food market which goes untaxed. He was doubtful where the money for the investments allocated would come from if collection from tax alone was Rs. 6000 cr. and other avenues remained untapped. He summed by saying “Capital asset created correctly will give future results for this nation.”