Budget day dreams ...

There is something about our budget that makes economists, stock market analysts, dealers, industrialists and even common man start day dreaming!

The fever catches as soon as people start breaking their New Year's resolutions, which is typically a fortnight or so into the year. Once, we are done with the festivities & the Republic day, the drumbeat starts to raise its voice and experts and sundry start predicting what the Finance minister will roll into the budget. This year is going to be an extra long journey as the FinMin decided to unveil the budget on March 16th instead of the usual end of February. All the better for media, as they fill time with fantasies about lower taxes, increasing limit of deductabiles or even increasing the various tax slabs. The media will line tons of eager housewives, retirees, 'young but struggling' and 'young and high-flying', public servants, private servants .... you get the picture ... Everyone and their uncle will ask the government for a narrowly defined favorable treatment.

So, let's get started. CNN IBN has already interviewed and made a few wishes/desires or 'feedback' as they call made known. First of many, i think ... Real estate thoughts, Power and Energy thoughts, International taxation issues, healthcare, bicycle manufacturers, Auto companies. Major media publications already have dedicated landing pages - Moneycontrol, Economic Times,

The worst of the lot - FirstPost asks "Budget 2012: Should you give a damn?" My friend, can you stop giving it a damn! Wait for a month and Pranab-da will introduce the budget and we can analyse it rather than day dream today ... What say?

PS: I wrote a blog post earlier related budgets. Differenet context but the data points are amusingly/sadly pretty similiar.

The biggest myth about the Budget

Ok, it isn't a myth. 

It's more like people's aversion to accept plain truth.

The budget is more a mechanism of rewarding the supporters than anything else. That's one reason why the budget was more focused on the poor than on business. What else can we expect when India's business capital didn't even have time to vote in the recent election?

And to see the kind of bizzare predictions made by respected media outlet - Interest Payment on Home loans increased from Rs 150,000 to 250,000 (Business Standard), a figure that jumped to Rs 300,000 (The Economic Times). Slashing Personal Income Tax from peak 33.99% to 25% (The Hindu) or increasing the Income Tax Exemption from 150,000 for common 'man' (Woman have limit of Rs 180,000) to 200,000 (CII Wish List) or 300,000 (Assocham).

So, lesson to the Rich, Upper-middle class, middle class: Next time you want the Finance Minister to do you favors, go to the voting booth.