Capital market, industry sector are hopeful. As it has been decided that or fix that new UPA government will be formed at the central under the leadership of congress party, because of which capital market and industries are expecting quick reforms in basic infrastructure, in power sector, and already late in disinvestment process, should get momentum. Market is also keeping eye on how finance minister manege to raise fund to fill up deficiency of 10% in reference to total production growth and expenditure, while presenting a budget in July 2009. Stability & social reform process has got a green signal due to rejection of leftist party by voters. Because of this, persons related to share market have expressed that share market will open with long jump on Monday.
Share market which was closed on Friday on 12000, have a reflection of stable government at the central. There are signs that on 18th of may while opening the market, it will get momentum. Dr.Anand Sathe, Director of Kalyani capital said regarding expectation of market from new government that leftist party which were preventing/obstructing the process of economic reform, while Manmohan singh was the prime minister, now that process of reforms will get momentum. Disinvestment programmed will gather momentum and funds can be raised. While doing so, sick units can be modified by selling of equity of sick units and govt can raised good amount of funds from sale of equity of blue chips. There will be increased in employment opportunities if share market remain on expectation level, then process of disinvestment of blue chips will get good response.
In coming five years, there will be need for power energy on large scale due to which there is urgent need for improvement in power sector. Considering the affidavit submitted by central government to the supreme court regarding participatory notes, there is a need of fixing definite policy regarding participatory notes, which may be either for bringing money into share market through media of participatory notes or putting restrictions on it.
Famous Chartered accountant Mr. Milind Sangoram said that there is no need of making any changes in income tax slab rate & rates. But instead they should give emphasis on how it should be made more broader. FBT should be completely deleted or there is a need of making it more convenient & easy. General income tax payer have to bear repentance due to origin of income tax deduction rule. There should be uniformity and easiness in laving of taxes. Mr. Govind Patwardhan a member of advisor committee of vat of government of Maharashtra has stated regarding indirect taxes that government had given promise regarding implementation of system of general service tax & goods taxes from April 2010.
Now good opportunity has come for keeping that promise. Rate of service tax should be kept as it is due to recession but when needs arises, it should be reduced if possible.
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