Although the government is unlikely to introduce the DTC from April 1, 2012, as planned earlier, it may incorporate some of the provisions of the proposed law in the Budget for 2012-13, to be unveiled on March 16.
Against a budgeted deficit estimate of 4.6 percent of gross domestic product (GDP) for the year ending March 2012, most economists believe the deficit could come in as high as 5.6 percent - a full percentage point higher.<br /><br />
<br /><br /> In the last Union Budget, government imposed a minimum alternate tax of 18.5 percent on the book profits of SEZs developers and units.
The budget needed to embolden investors into investing capital in the country.
As Pranab Mukherjee gets ready to present Budget 2012 the message is clear - focus on accelerating infrastructure spending and break the policy logjam.
There is a strong need to set up a real estate regulator to ensure fair play and transparency in the industry.
The Union Budget 2012 should focus on introducing GST and DTC, along with growth in rural areas and provision of more education and health facilities through centralized sponsored schemes.
The brokerage predicts the budget will focus on two issues: cut government expenditure and boost private investment.
To boost tax revenues, the government could do two things: one, increase tax rates and/or get more people under the tax bracket.
Analysts reckon if the diesel tax is levied, it could result in the cost of a diesel car increasing by up to 20 percent, causing a further dent on the auto industry's outlook in the immediate term.
Manika Premsingh spoke to Ajay Shah of the National Institute of Public Finance and Policy for Firstpost.
Rupa Rege-Nisture, chief economist and general manager of the Bank of Baroda, speaks to Firstpost's Rajanya Bose in an exclusive video interview.
Economists are keeping their fingers crossed on what lies ahead. But their prescriptions are clear: fiscal consolidation, energy pricing reforms, and rationalisation of subsidies.
The only positive to look forward to, brokerage Credit Suisse says, is that there could be a small boost to consumption.