The budget is imaginative and has captured almost all the ill of the economy. It is pro rich, pro corporate, pro poor and has some good intentions to track black money, find resources through conversion of gold resources into productive assets. Has identified areas for for investments, employment, skill development and has provided needed support for infrastructure growth. Development of bond market and creation of infrastructure fund will give a fillip to raise long term funds. The negatives so to say in the budget are there are nothing to boost savings vitally needed to support investment, support capital formation as such and middle class particularly salaried have been completely ignored as the Government no more requires their support till the next election. Political interest has been well taken care of by pleasing NON NDA government ruled states. By and large, it can be said that it is an investment oriented budget with political gain in mind , but how far it will help to contain inflation only time will tell as the Service tax which is inflationary and adding to the cost of every transaction in the economy has been enhanced. RBI cannot be happy as the measures to contain inflation from supply side constraints are not finding place in the budget, and for taking away its powers on Monetary policy indirectly, FEMA regulation, and public Debt management. The intent to make RBI powerless is very obvious.
Dr. T.V Gopalakrishnan
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