We asked renowned people from the HR industry for their opinion on the Indian Budget of 2009, the impact of the budget on Recruitment and the Growth of various sectors, etc. This is what they had to say:
Arti Sharma, Head HR, India Yamaha Motor Pvt. Ltd.
Budget 2009 was not able to give much to salaried professionals. The increase of slab by Rs.10000/- will give little impact to few professionals.
- FBT abolition is good for corporates but required more clarity. Incase this will be passed on to employee on normal slab rate this will be a big hit for employees and that too at this time of recession, when no change or reduced salary .FBT abolition at employer end should not be passed to employees
as tax burden.
- There is one good step in last so many years that surcharge is removed for more then 10lacs salaried professional.
- Commodity rates are increasing, salaries in this tough market situation either no increase or cut , the budget was not able to give any relief.
- All salaried professionals were expecting increasing under Home loan exemption but no change made all unhappy.
- This is good step that Govt.is taking care of farmers and want to focus more on their development ,but Govt need to understand
that most of their tax collection is coming from salaried professionals.
There is nothing for salaried professional.
Overall the budget -2009 was not able to give any relief to salaried professionals ,and a big disappointment for all.
Rajita Singh, Head – HR, Broadridge Financial Solutions (India) Pvt. Ltd.
It is great to see the focus on bringing back GDP to 9% and from an HR perspective this focus means greater employment opportunities for all thus increasing the standard of living. Also good to see no FBT and increase in the exemption limit. I would like all surcharges and cess to go as well. Happy with the spend on infrastructure as well.
On the Industry front, welcome the announcement of GST. The concerns I have are high fiscal deficit and no direction wrt to disinvestments.
Vinda Chitnis, Vice President – Human Resources & Administration, THIRDWARE SOLUTION Ltd
“I feel, Extension of Fiscal benefits like 10A/10B sections for Tech industry under the Software Technology Parks of India scheme will help stabilise and grow in present volitile situation.
Makarand Deshpande, Director – HR & Admin, Skoda Auto India Pvt Ltd
It is no major step to give boost to the corporate sector except abolition of FBT (Fringe Benefit Tax). Absolutely nothing is provided for the SME sector which is one of the large sector to provide employment opportunities.
For individual tax payers , major relief was expected this time but they are completely disappointed. Very small relief has been given compare to expectations. The corporate sector was also expecting some relief in the corporate taxes but nothing is given to them.
No proper thought is given to boost the employment opportunities and to counter the recessionary effect, no major step has been taken.
The budget ensures to give 12 million jobs each year and reduce poverty by half by 2014, but how this will be done which is big question. The expenditure has crossed Rs. 10 lakh cr for the first time and fiscal deficit is 6.8% of GDP which is again highest. How this expenditure and deficit will be managed is not clear.
The roadmap for GST(Goods and service tax) implementation was expected to have better clarity for this major reforms in indirect taxes administration, no such step is seen or declared in the budget.
Overall in my view budget is disappointing for corporate sector as well as for the individuals and that’s why there was a biggest budget day fall in the SENSEX.”
Sanjay Shanmugaum, Vice President – Human Resources, CBay Systems (I) Pvt. Ltd.
Pranab Mukherjee’s Budget has correctly identified India’s immediate challenge to be that of that sustaining the GDP growth at 9%. With that in mind, the Budget has proposed the requisite economic stimulus needed for this, with financial inclusiveness as the guiding factor.
For the Indian IT and outsourcing industry that is struggling to cope with slowing global demand and shrinking profit margins, the Budget has proposed some much needed initiatives to boost growth. The removal of FBT and the reforms in indirect taxes is seen as a major plus, allowing for stock based compensation to be more effective.
In a knowledge sector such as ours, this becomes even more pertinent, and helps us manage our talent needs better. That said, the decision to extend tax deduction on export profits under Sections 10A and 10B of the IT Act will help Indian companies retain competitive edge in a global scenario.
On the whole, the Budget focuses strongly on social and rural upliftment and the government’s increased expenditure on infrastructure, agriculture and urban development along with the slew of incentives for private investment in education, social security and energy security will provide an impetus to these sectors while strengthening India’s overall competitiveness and indirectly create employment opportunities.”
Arun Solomon, General Manager-Human Resources, MSPL Limited
“This budget appears to be focused on reducing the impact of recession. As employees and employers the very marginal tax exemption of Rs. 10,000 and dispensing with the surcharge will benefit practically many employees across the spectrum.
The increase in terms of the amount for the medical treatment of dependents with disability lightens the burden of those who have dependents.
Employees were expecting the conveyance allowance to be increased and similarly premium on medical insurance to be substantially increased. To disincentivise all the talent to be heading towards metros, some of us had hoped that there would have been some tax incentives for employees working in non-metro areas also enabling talent to gravitate.”
Stay tuned for our next batch of expert’s opinion on the way the Budget of 2009 will impact jobs and industries nationwide.
What’s your opinion on the Budget Plan for the year? Share it here with other blog readers like you.