The first expectation from the Budget is the continuation of fiscal stimulus in 2010. Although there have been talk of a recovery by the Government, this is a long process that needs to be sustained. Else, there is every chance of a relapse in some sectors, particularly export-oriented ones, which are linked with players across the globe, where the recovery has been much slower.
Secondly, the GST (Goods and Services Tax) should be implemented from April 2010, even if there are some shortcomings. The flaws could be changed in the coming days, rather than missing the deadline. Indirect tax reforms via a uniform tax rate under GST will boost productivity and improve revenue collections for the industry and the Government.
Besides these, the Government should reconsider the hike in MAT (Minimum Alternative Tax) to 15 per cent in the previous Budget and roll this back to 10 
per cent. There should also be less stringent norms for biopharmaceutical companies to avail themselves of government grants, because funding is a major impediment. Tax rates on venture capital could be lowered to encourage easier access to loans, as private equity firms are wary of investing in biopharmaceutical companies due to the long gestation period and the uncertainty about the final success of potential drug candidates. Lower taxes will boost investment and encourage research into such diseases as cancer.
Tax breaks for the biotech industry could improve revenues and returns, making this an attractive option for the youth to venture into biotech and pharmaceutical R&D as well as contract and clinical research organisations.
