Union budget 2012 will not promote economic growth – Gerald Colaco

Union budget 2012 will not promote economic growth – Gerald Colaco

Mangalore Today News Network

Mangalore, March 27, 2012: Mr. Gerald Colaco, a partner of Colaco and Aranha, said at a meeting organized by the St. Aloysius College Alumni Association (SACAA) in the premises of St. Aloysius College on March 26, 2012 that the union budget of 2012 is ineffective and timid and will not promote growth. Mr. Colaco was talking about the budget with the help of a PowerPoint presentation.

Further, he explained that the budget comprises no reforms and merely tweaks direct tax laws while raising excise duties and service tax, which will only cause prices to hike again.

 

Stating that the financial situation is collapsing, he said that the budget does not provide any solutions for its improvement. He said that the government, which hopes to earn Rs. 9,77,335 crore in 2012 – 13 will be spending Rs. 14,90,925 crore and will borrow to meet the shortfall of Rs. 5,13,590 crore. The fiscal deficit can put the country in a hell of high rates of interest, low individual and corporate earnings, low spending, low consumption, low demand, and low tax collection, with no reduction in expenditure, he explained.

One of the side effects of this budget, according to Mr. Colaco, is lesser jobs for the ever-rising youth population of India. While India’s GDB growth rate was 9.3 percent in 2007 – 08, it fell to 6.7 percent the next fiscal year because of the global recession. In the next two fiscal years, it rose to 8.4  percent and the government should have capitalized on this resilience in economy by announcing and implementing a slew of reforms that would have put India is a top position financially, he said. 

Mr. Colaco also said that the reduction in direct taxes will not help because the gain to householders and individual tax payers will be eliminated by price hike caused by increase in central excise and service tax. He referred to the budget as an “ineffective” budget, which will cause a lot of harm to the economy.

President Arthur D’Souza, Honorary Secretary Naveen Mascarenhas, SACAA Talks Convener John B. Monteiro, and others were present.