Post Budget Comment

<p>We are happy to see a budget that is in line with the direction already taken by the Government.</p><p>?</p><p>There has not been a major shift in their approach. This means that we will continue to work under the same set of rules, making it easier to navigate the systems since, I hope, we have understood it better.</p><p>?</p><p>The Union Government continues to spend heavily and therefore, relies heavily on tax collections. This heavy spending is needed to maintain the GDP at the current level and to create the flow of money across the country. And this also tells us that the government is not expecting the private investors to pick up speed!</p><p>?</p><p>High tax on fuel has literally pushed the people to take a closer look at the Electric vehicles. This has catapulted the EV industry to a higher plane already. This budget also goes on to push EVs and we can expect larger number of models and vehicles to hit the market in the near future.</p><p>?</p><p>Green energy push has decided on which path the country is taking in the new fork mankind is facing with respect to energy. Really, is there any other option? The paradigm shift that we are facing in energy, continues to be a great opportunity for the country to take the lead in it.</p><p>?</p><p>Green hydrogen push is more in line with what is happening elsewhere and we might also do more research in what others are also betting, by spending over 17,000 crores on it. Three litres of Hydrogen would produce the same energy as that of 1 litre of Petrol, approximately. Cost wise, one litre of Petrol is today at Rs.100/- in the retail market while that of hydrogen stands is just about Rs.21 at the gate of the manufacturer.</p><p>?</p><p>Energy equivalent wise, you might still find it at about Rs. 63 against Rs.100 of the Petrol! Remember, as of now, hydrogen does not suffer any tax! And Petrol suffers almost 70% as taxes. Therefore, the net of tax price would appear rather skewed in favour of petrol, questioning our decision to support green hydrogen.</p><p>?</p><p>But then all new technology would start at a high price and the price of hydrogen is expected to fall by 50%, come 2030.</p><p>?</p><p>As to what has been done to Direct taxes, no announcement on the integrated Direct Taxes Code getting implemented in the near future. However, parts of it has already gone online and we hope it will get squeezed in without Parliamentary discussion, as usual.</p><p>?</p><p>The step towards gross income taxing is a welcome measure though we are really taking baby steps when it is not really required. But at the same time trying to retain a high tax rate is not encouraging the tax payer. That also leaves a doubt in our minds whether this is really towards gross income taxation as it was made out in the previous budgets or is it getting diluted?</p><p>By and large, we expect the budget to maintain the status quo. No major boosters; no confuses either. Allows people to settle down and mind their business!</p>