Spending on rural employment takes away much needed resources for building infrastructure. Similarly, any loan waiver program will eat into capital spending on infrastructure.
The priorities for the government while preparing Budget 2012 should be to start looking at the whole situation in a multi-dimensional way and not take growth for granted.
Manika Premsingh talked to Surjit Bhalla of Oxus Investments on behalf of Firstpost, and he made it plain that "the top priority must be move away from populist measures".
Dr Ashima Goyal of the Indira Gandhi Institute of Development Research in Mumbai told Firstpost's R Jagannathan that it is not the raw numbers that matter to fiscal consolidation, but the quality of the adjustment.
In an exclusive interview to Firstpost, Ashima Goyal of IGIDR, said the challenge for the government is to rein in the deficit while addressing the issue of slowing economic growth.
The report suggested that the wealth tax limit be pegged at Rs 5 crore, while the Securities Transaction Tax (STT) be abolished.
The Infosys CFO is hoping for an aspirational budget which must revive the confidence of global investors in the India Growth story.
"The government has boxed itself into a corner, where the only priority is fiscal consolidation," Walker told Firstpost in Hong Kong.
The government's willingness to cut back subsidies will be on stern test, but it will likely disappoint, says the economist.
While the industry would like to abolish or reduce the Minimum Alternative Tax on SEZs, the likelihood of this getting announced in the budget is almost nil.
Dharmakirti Joshi, chief economist, Crisil, believes, you have to start with cutting oil subsidies – with diesel deregulation taking the prime spot in reforms.
Rather than allocating more money for govt-run schools, there should be a bigger thrust towards involving the private sector by subsidising loans and providing tax-breaks to set up schools.
The government needs to increase its focus on the agricultural supply chain, if it wants to lower inflation.
Economist Surjit Bhalla of Oxus Investment says that the budget must target subsidies and also reduce the NREGA allocations next year.
The industry is asking for tax exemption on interest on housing loan to be raised to Rs 3 lakh from the current Rs 1 lakh.
Deficit numbers for 2011-12, while higher in absolute terms may not be alarming. This is called "inflating away the fiscal deficit".
Ajit Ranade, chief economist of the Aditya Birla Group, he would prefer to avoid being seen as a fiscal hawk - where the first priority of the finance minister would be to balance his books.
Rana Kapoor, CEO of YES Bank says he would prefer to push for second generation reforms, increase investment in infrastructure, introduce Goods and service tax and rationalise revenue collection methods this budget.
Fitch Ratings analyst Art Woo gives Firstpost an 8 percent growth rating for India, despite its economy having hit a rough spot.
Making ends meet is the biggest challenge facing the finance minister, come 16 March.
No matter what the finance minister does in his budget, he will end up stoking some kind of inflation.
If Pranab Mukherjee must tax, where must he go looking for additional revenue?
Manika Premsingh talked to Surjit Bhalla of Oxus Investments on behalf of Firstpost, and he made it plain that "the top priority must be move away from populist measures".
Dr Ashima Goyal of the Indira Gandhi Institute of Development Research in Mumbai told Firstpost's R Jagannathan that it is not the raw numbers that matter to fiscal consolidation, but the quality of the adjustment.
If Pranab Mukherjee must tax, where must he go looking for additional revenue?
No matter what the finance minister does in his budget, he will end up stoking some kind of inflation.
Making ends meet is the biggest challenge facing the finance minister today.
Whether it is food, or fuel or fertilisers - the 3Fs for the FM - the subsidy bill has, through benign political neglect, burgeoned into something frightening over the last eight years.
Ajit Ranade, chief economist of the Aditya Birla Group, he would prefer to avoid being seen as a fiscal hawk - where the first priority of the finance minister would be to balance his books.
Two expectations seem to be common among experts: an increase in excise duties by about 200 bps and expansion of service tax net.