Budget 2012: 5 best and 5 worst as per NDTV experts

New Delhi: 

Pranab Mukherjee presented his seventh Budget amid lots of hopes. Here are the five best and worst announcements in this year's Budget according to NDTV experts.

Five best:
1) Negative list for services: The budget has introduced a negative list of services, which will not be subject to service tax. All the rest will be taxed. Currently, only 107 specified services are taxed.

2) Subsidies at 2% of GDP: Fiscal deficit overshot the projected 4.6 percent of GDP mainly on account of higher subsidy burden. Reducing subsidies will help contain fiscal deficit.

Dr C Rangarajan, Chairman of Prime Minister's economic advisory panel told NDTV: The subsidy had gone up very high in the current year and according to the detailed number, subsidy under petroleum is Rs 43,000 crore and that means some policy decision would be taken during the year to control petroleum subsidy.

3) Tax free infra bonds: The finance minister has proposed to allow tax free bonds of Rs 60,000 crore to be issued by various government undertakings, which is double the Rs 30,000 crore assigned in the year 2011-2012. This will give a boost to the infrastructure sector that has been reeling under high interest rates and policy paralysis.

4) Foreign borrowings for low-cost housing: External commercial borrowings permitted to low-cost housing sector. External commercial borrowing of up to $1 billion permitted for airline sector.

TCA Srinivasa Raghavan, Senior Associate Editor, The Hindu Business Line says: The ECB for power and housing is a positive move... These guys need money and if you cannot give them from inside let them have from outside... it’s an option for these sectors.

Omkar Goswami, Chairman, CERG Advisory:  I know of several companies who are happy to borrow even at a 3-5% premium if the ECB allows them to borrow.

5) Expansion of venture capital:

Five worst:

1) Fiscal deficit at 5.1% of the GDP: Fiscal deficit for 2011-12 rose to 5.9 percent, much higher than 4.6 per cent promised last year. Next year’s projection is 5.1 percent. There is no roadmap for this ambitious target. Analysts had expected the deficit to be below 5%.

B Muthuraman, President, CII & Vice Chairman says: I don't know how will this happen.

2) Allocation of divestment proceeds:

3) Growth projection at 7.6%: Analysts said this is an ambitious target considering that the Indian economy is likely to grow by only 6.9% this year.

Tarun Kataria, chief executive office of Religare Capital Markets said: The 7.6% GDP figure is not realistic. The sub-2% subsidy figure is also very hard to crystallize. So, 5.1% deficit may reach 6%.

4) Subsidy payment by cash vouchers:
5) Increase in agricultural credit:

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Worst Australia tour in 45 years: Team India departs for home

Brisbane: Outplayed on the field and dogged by persistent reports of a rift in the team, the demoralised and jaded Indian cricketers left for home on Saturday after the worst tour of Australia in the last 45 years.

As soon as Sri Lanka pipped Australia at the post in Melbourne last night, the Indian players started making their reservation plans to return home after a long and grueling tour during which most of the players struggled to perform.

The players with bases in Mumbai and south India -- Sachin Tendulkar, Zaheer Khan, Rohit Sharma, Umesh Yadav, Vinay Kumar, Ravichandran Ashwin and the entire support staff -- took a morning flight to Singapore where they would board respective connecting flights to Mumbai and Chennai.

Skipper Mahendra Singh Dhoni, Virat Kohli, Virender Sehwag, Gautam Gambhir, Suresh Raina, Praveen Kumar and Rahul Sharma left Brisbane this afternoon, again for Singapore where they would take the flight to Delhi.

Irfan Pathan and Parthiv Patel, with bases in Gujarat, will leave for home tomorrow.

The Indians were not exactly glued in front of their TV screens yesterday to watch the outcome of the Australia-Sri Lanka match which the latter won by nine runs in the final over.

The Indians were whitewashed 0-4 in the Test series and won just three matches, tied one and lost four during the subsequent tri-series which had Sri Lanka and Australia as the two other teams.

The last time the Indians suffered a 0-4 whitewash on Australian soil was in 1967-68. Twice they had lost a five-match series 0-4 in Australia -- in 1947-48 and 1991-92. This was the third whitewash Down Under.

As the crucial Australia-Sri Lanka match was going on in Melbourne, a few Indian cricketers wandered around in the market while a small group had dinner together. Only a few hooked themselves in front of television screens last night.

India had raised hopes for making it to the finals of the one-day series with an astonishing chase of 321 in 36.4 overs against Sri Lanka at Bellerive Oval, Hobart earlier this week.

The Indians had finally liberated themselves on an otherwise suffocating three-month trip to Australia during which they were blanked 4-0 in the Test series and claimed just two matches in the triangular series.

Batsmen and bowlers suffered collective failures and only Virat Kohli, and to a lesser extent Umesh Yadav and Vinay Kumar, redeemed themselves during the debilitating tour.

The Indians, after a few days rest, would head for Bangladesh to play the Asia Cup, due between March 13-22. Post Asia Cup, it would be time for the fifth edition of Indian Premier League (IPL), starting April 4.

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