‘There is something for every one in Pranabda’s Budget’

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: This budget came at a difficult time for the world as well as the Indian economy and soon after the government was re-elected with a clear mandate.

It was a difficult task for the minister to balance the need for growth, further his government’s commitment to ‘inclusive growth’, be prudent in a volatile economic environment and pursue reform. On the balance, I believe, the did a good job.

I believe we should recognise both the positive elements in the budget and the areas of continuing concern. First, the positives.

In typical Pranabda fashion, there was something for every one. For corporates, keeping the excise duty, service tax rates unchanged was a big relief.

The end of FBT was welcome removal of a thorn that kept bothering. The second was the increase in social sector spending and on infrastructure through JNNURM, NHAI, NREGA etc which would increase purchasing power, especially in rural areas.

Third, was an intention to undertake a series of big and small reforms that could improve growth. These include the commitment to introduce GST from April 2010, disinvestment, petrol price review, direct tax code revision, fertiliser subsidy revamp, convergence of NREGA and other schemes.