05/02/2017
1. Sensex zoomed by 486 points not for what budget had but for what it did not - like anticipated feared levels on capital gains & indirect FII gains and an increase in service tax to 18%. This was a relief rally.
2. Jaitley has failed fourth time on strategic sale of PSUs as well as sale of government stakes in private sector companies (SUUTI).
3. Jaitley has failed on his pledge to convert railways and ports into corporations.
4. Jaitley who had promised in 2014 to cut fiscal deficit to 3% of GDP in two years has postponed to do so twice in four years despite a bonanza from falling oil prices. That has made India lose credibility and made Moody's rate India as barely investment grade.
5. Jaitley's appointed Expenditure Management Commission of 2014 has sunk without a trace.
6. Jaitley had pledged to cut the corporate tax rate from 30% to 25% to help India compete with Asian neighbours with much lower rates. But he has granted this wish only to those with a turnover upto Rs.50 crores easily forgetting that these are not the companies typically competing with Asian neighbours.
7. Jaitley has lost a golden opportunity to convert demonetisation into a political winner. He could have put a few thousand crore rupees into each of 26 crore Jan Dhan accounts from uncashed high value note volume of Rs.30000 - Rs.45000 crore plus tax windfall from second VDS. This reduces both BJP's chances in the upcoming UP elections and the moral force of the crusade against black money.
8. Jaitley's proposed limit to the maximum cash donation to political parties from Rs.20000/- to Rs.2000/- can be easily evaded by increasing ten fold bogus entries of Rs 2000/- each.
9. Jaitley's proposed electoral bonds will become a way of holding black money since they will be bearer bonds as widely used by drug lords globally.
10. Jaitley's proposed new cash limit of Rs.3 lakh per transaction will come a cropper as tax payers will split large transactions into several transactions of Rs.3 lakh each.