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Budget - A marketing event, no less, no more
Although, the attention that is paid to the annual budget speech has diminished in past decade or so, it still evokes intense interest from the financial market participants. I feel it has more to do with the marketing success of business news channels rather than anything else. A number of TV shows are hosted to propagate an environment of expectation, hope and fear amongst market participants.
Somebody gotta give
Last evening I heard some bankers and economists at a seminar. The common running idea in all formal presentations was how to revive investments without compromising fiscal discipline. But none, yes none, suggested higher taxation on businesses or the rich.
Market low on hope this time
This year heading into the budget presentations, the markets are badly beaten, extremely jittery and expecting little from FM. Save some minor tax concessions here and there, the market is mostly praying for a status quo.
Reforms go much beyond New ITR forms
I have been insisting that "reform" must be distinguished from mere administrative correction. A policy measure in order to qualify as "Reform" must change the status quo materially.
Reform do not mean higher profit or higher Sensex
The businesses, investors and consumers need to assimilate that economic reforms do not necessarily result in more profit in the immediate term. To the contrary, economic reforms are more likely to cause pain and inconvenience in the immediate term as these involve fundamental changes in the processes and practices of doing business and consuming goods & services.