In the era of global linkages when the world economy is coupled with each other in such a way that even a small hiccup has multiple effect on each country, an economic crisis like the current situation is certainly going to have major influence in the functioning of any country. India which is one of the fastest growing economies of the world also is not detached from this crisis and it was evident when Finance Minister Pranab Mukherjee presented the budget for the year 2009-2010. The government tried to cope up to the crisis but the stock exchanges straightway gave a thumbs down to the budget. On the other hand the economists were seen more or less happy but the corporate sectors gave a mixed reaction. News channels, Business Magazines, Newspapers are still trying to read the fine prints of the budget and still trying to find the answer of the question – How was the Budget 2009?
Globsyn Business School, which has always worked to keep its students updated with all important issues, organized a seminar with both industry and academia to discuss about ‘Budget 2009’ to get a detailed view of this whole situation. The speakers in the seminar mainly discussed the budget in three dimensions – the background of the Budget & the high fiscal deficit, provisions for inclusive growth, and the tax structure.
To start the proceedings Dr. Anjan Chakraborty (HOD – Economics, University of Calcutta) explained the background of the budget in details. He termed the current situation as an Economic crisis, a crisis of neo-liberalization and globalization. In this situation strong government measures are absolutely necessary and the Indian government like its world counterparts is also taking firm actions to deal with the situation. The union budget 2009 is a continuation of the economic measures of Indian government. He justified the high fiscal deficit in the budget as it was necessary to maintain a high growth rate of GDP in a situation where the other components of it like – consumption, investment, or net export is not showing positive movement.
Elaborating on the inclusive growth, Dr. Srimanta Bhaumik (ex Reader – Economics, Presidency College) harped on the point that the Indian rural economy has the potential of becoming the most important driving force of GDP. His point was that the reduction in external demand can be countered by increasing the internal demand especially in the rural sector. As a reason of that the government is expending heavily in this sector. But he also shared his reservation about it as this kind o f measures did not yield any significant results before. His suggestion was that the government should focus in increasing the facilities for agriculture which is the main component of rural economy and which will help to make the rural economy to grow from within.
Mr. Pallav Gupta (GM – Taxation, ITC), an industry veteran then shared his view about the budget. His speech was mainly focused on the different tax structures proposed in the budget for the corporate sector. The effect of direct and indirect taxes on common people was discussed in length by Mr. Gupta. He also shared his concern about the Goods and Services tax that the government is proposing to introduce from next financial year as it may not be possible due to difference in interest between the states of India.
At the end of the session there was a brief Q&A session where students asked different questions to the panel members to clear their doubts. They were also thankful to Globsyn Business School’s ‘Knowledge Cell’ to organize such a seminar.
Globsyn Business School, which has always worked to keep its students updated with all important issues, organized a seminar with both industry and academia to discuss about ‘Budget 2009’ to get a detailed view of this whole situation. The speakers in the seminar mainly discussed the budget in three dimensions – the background of the Budget & the high fiscal deficit, provisions for inclusive growth, and the tax structure.
To start the proceedings Dr. Anjan Chakraborty (HOD – Economics, University of Calcutta) explained the background of the budget in details. He termed the current situation as an Economic crisis, a crisis of neo-liberalization and globalization. In this situation strong government measures are absolutely necessary and the Indian government like its world counterparts is also taking firm actions to deal with the situation. The union budget 2009 is a continuation of the economic measures of Indian government. He justified the high fiscal deficit in the budget as it was necessary to maintain a high growth rate of GDP in a situation where the other components of it like – consumption, investment, or net export is not showing positive movement.
Elaborating on the inclusive growth, Dr. Srimanta Bhaumik (ex Reader – Economics, Presidency College) harped on the point that the Indian rural economy has the potential of becoming the most important driving force of GDP. His point was that the reduction in external demand can be countered by increasing the internal demand especially in the rural sector. As a reason of that the government is expending heavily in this sector. But he also shared his reservation about it as this kind o f measures did not yield any significant results before. His suggestion was that the government should focus in increasing the facilities for agriculture which is the main component of rural economy and which will help to make the rural economy to grow from within.
Mr. Pallav Gupta (GM – Taxation, ITC), an industry veteran then shared his view about the budget. His speech was mainly focused on the different tax structures proposed in the budget for the corporate sector. The effect of direct and indirect taxes on common people was discussed in length by Mr. Gupta. He also shared his concern about the Goods and Services tax that the government is proposing to introduce from next financial year as it may not be possible due to difference in interest between the states of India.
At the end of the session there was a brief Q&A session where students asked different questions to the panel members to clear their doubts. They were also thankful to Globsyn Business School’s ‘Knowledge Cell’ to organize such a seminar.
