On February 28, the Union Budget would be tabled in the Lok Sabha by the finance minister. The expectations are touching sky from common people of India and corporate India at the time when Indian economy is likely to register more than 9% GDP growth.

The Inflation rate is also touching a two-year high. Many corporate leaders are expecting reduction in corporate tax. They want from the budget that there should be some measures in th forthcoming budget to boost the capital markets.

The Assocham Business Barometer has surveyed regarding the expectations grooming in the corporate India from th budget. The survey revealed that 72% of 150 CEOs and Managing Directors have said that Chidambaram should bring down the customs duties of 12.5 per cent to 10 per cent. It would be helpful to improve supplies of essential commodities as well as the raw materials for industrial goods to check the rising inflation.

The survey said further that 90% of the corporate leaders have asked to expand the tax base that would be helpful to bring together more resources.

They have also asked the finance minister to remove the controversial Banking Cash Transaction Tax that was imposed in last year Union Budget. It had imposed the 0.01 per cent tax on the withdrawal of cash more than Rs 25,000 and Rs 100,000 in a single day.

However, nearly half of the 150 corporate leaders said that the tax rate on foreign companies would be reduced to 30% and 83% of them felt that a change in service tax rate is also necessary.

The Banking Industry has its own demand because of the recent rise in the credit demand and increase in the cash reserve ratio and repo rate. It has also asked the Finance minister to take some necessary steps to boost bank deposits and some relaxation in the lock-in-period for time deposits.

There is an indication coming from the finance ministry that the excise and customs duties on diesel and petrol would be reduced in this budget. On the other hand, the agriculture sector may get some handsome budgetary allocations to restrict the inflation.

The common people of India have got blows from the rising prices of the essential commodities in last 2 months. They are expecting from the finance minister to take necessary steps to bring the prices down as soon as possible.

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