PHD Chamber, in association with Bharatiya Vitta Salahakar Samiti (BVSS) organised an Interactive Session on ‘Implications of Union Budget Proposals’ with focus on Capital Market on July 7, 2009 at PHD House, New Delhi. Noted economist Shri P N Vijay and Shri Amarjit Chopra, eminent economist, were the key speakers who shared their perspective on the subject.
Shri P N Vijay, in his presentation, considered the Budget as a balanced, pro-growth and positive. He pointed out that the Budget missed on making specific announcements on FDI in insurance and multi-brand retail and there was lack of clarity about the Government’s disinvestment programme as also handling of large fiscal deficit. Abolition of STT and decontrol of petrol and diesel prices were also expected which the Budget did not address. Observing that the market reaction to the Budget was overdone to a large extent, he emphasised that the Budget would spur domestic consumption and infrastructure spending. Moreover, there was a possibility of big ticket moves for bringing reforms even outside the Budget. As calculated by the FM, the Government had taken a risk of promoting growth hoping that growth itself would bring fiscal stability.
Shri Amarjit Chopra felt that the FM had deliberately desisted from making bold announcements about PSU disinvestments as the present market conditions were not very favourable for the purpose. However, the Minister had tried to inculcate better financial discipline. Further, even though STT had not been removed, Shri Chopra felt that in his opinion, it was better to have the Long Term Capital Gain tax removed or have a lower Short Term Capital Gain tax rather than removal of STT. The only disappointment, according to him, was that the housing or the real estate sector had not been given any boost. Among the other economist who delivered their address on the occassion were Shri G Ramaswamy, M K Doogar, Shri Praveen Kant and Shri Vijay Mehta.
Shri Gopal K Agarwal, Co- Chairman, Capital Market Committee, PHD Chamber convened and moderated the programme.