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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LA experts for Saif’s role in Judwaa 2

By Hindustan Times

Come 2013 and Saif Ali Khan will don a dual avatar in Judwaa 2. And to make sure his double role stands out, the makers have roped in a team from the USA towork on the film’s special effects. Confirms producer Sajid Nadiadwala: “Yes, we have hired a LA-based expert group and they are flying to Mumbai by April end to get started on Judwaa 2. Let’s see how things work out.”

To be directed by the Housefull series director, Sajid Khan, the film is likely to go on floors by February next year. Nadiadwala informs that the story is ready. “Now, I am working on the screenplay with a team of writers,” he says, adding that the idea is to come up with “never-seen-before” special effects.

“The original came out in 1996, and a lot has changed since then in terms of technology and audiences’ expectations. So, we plan to take the ‘double role’ factor to a level that no one can even think of,” says the producer.

How exactly will the technology work on Saif’s double role? “It’s very difficult to explain, but with the help of special effects, both the characters will talk, run, fight and sing in a way no one has seen till date. We will make two similar-looking people in the same frame do a few things that are otherwise not possible,” says Nadiadwala.

Although initial work on Judwaa 2 has started, the makers are yet to sit with Saif about the project. The producer explains, “Since he is busy with Agent Vinod and we are caught up with Housefull 2, we haven’t had time to discuss it in detail. Once both the films release, all of us will be relieved and will have time to talk.”

Lastly, ask him if Salman Khan – who happens to be his good friend – is fine with the sequel and he says: “To be precise, it has nothing to do with Judwaa. We could name it ‘Twins’ and it would still be as exciting.” He also adds that the exact shooting dates and the female actor will be decided only after April 10. Judwaa, directed by David Dhawan, had Salman play the roles of estranged twins, Raja and Prem.

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