Budget 2010: Mind numbers

You all must be surprised that after almost 20 days why am I analyzing and writing about the Union budget, but this budget is so interesting that I can’t resist myself from writing about it. Highlight of budget says that Income tax exemption limit has increased and the tax structure has changed these are positive news. But at the same time FM has increased export duty, hike in Petrol prices and increase in stamp duty on land registration and building construction.

In all if we see there are so many thing which can affect common man in his day to day life such as increase in petrol prices which will indirectly help to take the inflation higher or even excise duty hike will indirectly increase the burden on common man but, there is something positive about this budget and it is that it gives the indication that government is looking for growth. Government has not rolled back any stimulus which is really positive for the industries and one more important thing government has did is that they have increased tax slab. The change in the tax slab is not too high but even a small increase in one’s earning results in more spending and we will see this in near future.

When a person tends to earn X money he used to save X/4 money and when his salary increases and becomes X+5000 he try to spend those money and it helps the economy. Even 100 bucks from an individual helps the economy to pick up and here we are talking about nearly 20% Indians it’s huge.

These all are evident from the fact that Indian stock exchanges are showing positive signs. After these stock exchanges has became the face of the economy we try to convince ourselves that the economy is picking up after every high at stock exchanges and these further improves the sentiments and helps people to append more which results in pick up in economy. With this global condition is showing positive signs which further helped stock exchanges to move further.

In all I can say the Union Budget is not only about numbers but it is more than that. It gives the indication what government priorities are and what they going to do in future.