Hiranya Ashar, CFO, Rolta India

“It will be interesting to see how our Finance Minister will balance this budget between Inflation, Growth and Deficit. He has very little room to play on direct and indirect tax fronts as it will be difficult for him to make any fundamental changes which are different from DTC and GST. I think most of the proposals on Direct Taxes will be more or less a step towards DTC. From the IT Industry’s perspective there are 3 major items which we are expecting in this budget. The first one is the much talked about extension of STPI benefits under section 10A. Though many companies and industry associations have recommended STPI benefits to continue for a longer period and to be treated at par with SEZ benefits, I think in this budget at least one more year’s extension will be extremely helpful. The issue about continuance of STPI benefits under DTC can be taken up separately when DTC is discussed and passed by the parliament. The second item is the rate at which MAT is levied. The MAT regime started with a tax rate of 7.5% of book profits and now this rate has been increased to a whopping 20%. This rate is certainly too high and has a big impact on cash flows of all companies not only in the IT sector but other sectors as well. We expect that this rate should be reduced to a reasonable rate between 15-17% and if government wants to retain 20% rate for MAT at least the name of this tax should be changed to “Maximum Alternate Tax”!!. Third major item is on the indirect tax side where there is still no clarity on how software should be taxed, whether it is services or goods and whether service tax or VAT is applicable? This issue certainly gets addressed with the introduction of GST however since there are lot of uncertainties around GST implementation, immediate clarity of this issue from the government will be highly appreciated by the industry.”

G. M. Sundar, Chennai

Now we observe our economy is recovering; economic data confirming growth inall sectors, except agriculture due to deficit rainfall. We also appreciate the UnionGovernment's concern for rise in prices of essential commodities and their affordabilityby common man. It may be due to supply ; hoarding; increase in consumption due tobetter standard of living; Centre or State poor monitoring, etc. There are lot of assurancesabout the efforts of improving the supply and other actions. Ultimately, the history provesthat bringing down the price of a commodity is an extremely difficult task. Now, let us try to bring a change in the system of distribution of essential commodities.Issue of UID card is certain to bring about few benefits. In the meantime, Union shouldformulate a system to ensure that every household get their monthly quota of rice/wheat and dhal at a price fixed by Centre. Even we may go back to barter system;employees getting their essential goods as part of their pay. The situation is so seriousand it should be tackled only by Centre - Banks were nationalised to ensure free flowof credit to all, petroleum products are sold at fixed rates, power/fertilier is taken care and why not few essential items. When ration card or other public distribution system of States unable to tackle the issue, only Centre should step in, We expect atleastfew measures on the above lines, that is the dream of all.

M.S.Vaidyanathan, Chennai

I look forward to a budget that looks for its revenue from areas thathold immense potential and have not been effectively tapped in thepast for whatever reasons and provide relief to the salaried class.
It’s this class that has been worst hit by inflation. Spiraling costof essential commodities, be it vegetables or pulses have made lifemiserable. With their income virtually static on one hand andexpenditure mounting on the other, drawing up the monthly budget is anerve-wracking exercise for them. This budget I believe will providerelief commensurate with the prevailing cost of living for thesalaried class, to ensure they have the required disposable income totake care of their needs. I would like to see a quantum jump in thebasic exemption limit which should be raised to Rs.3 lakhs with a taxrate of 10% for theRs.3 lakhs to Rs.5 lakhs slab and 20% for income beyond Rs.5 lakhs.
Let the common man be spared as also the goods and services he consumes or uses.

Dilip K Raina, Ghaziabad

Relief to Salaried Masses.
In view of the untamed inflation and its adverse impact on the budgets of aam aadmi especially salaried class, it will bring cheer to such masses in case government provides some relief in the budget for the year 2011-12. There are adequate forums available for business community to correspond their genuine difficulties to the government for favorable consideration but for employees who depend on earnings through salaries/wages there is practically no mechanism in place to voice their concern. It will be highly appreciated in case finance ministry, considering the exorbitant rise in prices of essential requirements of daily life, provide some sort of relief in this year’s budget. The relief can be rolled back next year once the inflation is controlled. Such relief may be restricted only to those having a gross salary of up to say five/six lacs a year. Such a good gesture will not only ease aam aadmi financially but will also make him to feel that there is caring governance in the country. It may not be out of place to mention that perhaps monetary impact on the budget will not be bigger than an average financial scam reported recently. It is requested to kindly revisit charity section 80D, 80DD, 80DDB and 80U of the income tax Act. in view of the steep rise in the medical costs.
Dilip K Raina

K. V. Rao, Assistant General Manager (Retired), State Bank of India.

The current definition of Senior Citizens under the Income Tax Act is individuals aged 65 and above. Those who are in Government service (including public sector undertakings and banks) retire at 60 years. So the budget should aim at amending IT Act to bring down the age to 60 in conformity with the general retirement age.
Further, the interest earned on fixed deposits or even on savings parked in savings accounts attracts income tax if it exceeds Rs.10000. Considering the reduced value of rupee due to continuous inflation, this ceiling should at least be doubled. This would also achieve the objective of routing deposits through bank channels. Banks deposit growth is dwindling that would affect the credit-deposit ratio. At present the rural rich are averse to keeping their surplus in banks due to anxiety about deduction of tax at source. Banks can attract such deposits especially when they have been going in a big way for financial inclusion in rural areas.

Preetha Reddy, Managing Director, Apollo Hospitals Group

People define nations; they are the lifeblood of an economy and quite clearly a healthy ’Health Quotient’ can alone keep an economy surging ahead. Though this is seemingly obvious, healthcare or care for the health of India and its people has never been at the forefront.
The inception of Apollo Hospitals ignited a revolution. In pioneering corporate healthcare in India, this organization changed the rules of the game and set in motion the creation of a sector which is today touted as the fast growing, recession–proof sector of the Indian economy. Healthcare in India is predicted to be the next big boom, largely spurred by an increased corporate presence in the sector, recognition of India as a destination for medical value travel, outsourcing of global clinical trials, medical devices manufacturing and above all, an overarching cost advantage while matching and even surpassing global standards of quality and benchmarks.
India has a phenomenal Knowledge Quotient. Indian doctors are driving healthcare transformation across the developed world. A healthier infrastructure and an attitudinal shift with greater attention to healthcare will motivate these individuals to consider practicing in India, reversing the brain drain. Above all, it is important that we take cognizance of the clear link between health and economic growth as a 5-year gain in life expectancy leads to an increase of growth rate of 0.06 to 0.58% of the GDP.
The defining step would be the accordance of ‘National Priority Sector’ to Healthcare.
The primary obstacle hampering development of healthcare services has been the inadequate return on investments. According “National Priority Sector” status to healthcare will attract the capital required for development of physical infrastructure and development of educational institutions for medical, paramedical and allied academics. The status will create an attractive environment for domestic production of medical equipment, devices and consumables while also catalyzing research and development. India is poised on the door of superpowerdom. These imperatives will catalyse India’s economic development through healthcare and keep us fighting fit as a nation!

Dr. Prathap C Reddy, Chairman, Apollo Hospitals Group

India has made tremendous strides in several sectors that have propelled the country’s economy to levels never seen before. Despite a worldwide slowdown, India continued to surprise all. However, there is a great need for the health sector to accelerate and innovate to catch up with the healthcare needs of the country. Today, people in rural areas need greater attention and access to quality and timely healthcare since the existing facilities are inadequate the needs of the last person in the queue.
As we start a new decade I propose that it should be called the decade of inclusive health for all Indians where innovation and new healthcare technologies change the paradigm of health delivery at the rural and semi-rural level. Healthcare and hospitals are physical and social infrastructures and if the ambit was expanded to include infrastructure like Mobile Medical Units and ambulances, the last mile delivery of basic and ambulatory care would be greatly enhanced in rural India.
The National Knowledge Network (NKN) has plans to establish 100,000 nodes across the length and breadth of the country to bring together all stakeholders in Science, Technology, Higher Education, Research & Development and Governance on a common platform. Health must ride on this innovation as THIS IS THE SOLUTION, which is practical and doable if the nation has the will.
The need of the hour is to realize that healthcare is a necessary pre-requisite not only for economic development and progress, but also for skill development and creating employment for vast sections of our society. The potential that the health sector has to offer can add to the double digit GDP growth of the country and enable an India that is healthy and economically strong.