2. From budget figures, it seems there is a built-in inflation of 6 to 7 per cent in 2000-2001, against a possible average inflation rate of between 3 to 4 per cent in the current year. If the climate turns adverse in 2000-2001, the inflation will shoot up above 6 -7 per cent.

3. The additional tax effort in the budget is less than 0.3 per cent of the expected GDP of 2000-2001. In the face of the mountain of fiscal challenge this response is less minute than a mouse.

4. The Finance Minister is expected to borrow next year more than Rs 1,60,000 crore, if we include small savings. If the foreign financial inflows do not come in big measure, or there is any other crisis affecting inflows, the bulk of the lending will have to be done by the Reserve Bank of India and the banking system. This would expose the country to very huge inflation.

5. The current boom in the stock market is not based on any immediate improvement in real investment in the economy. The involvement of financial institutions in the stock market is not very healthy to the savers.

6. By removing the interest tax, the Finance Minister has brought down the effective interest rate on lending by nearly one percentage point.

7. The Economic Survey shows that this is the first year over the last 8 years when the real wages of ordinary labour in India have fallen. Further, there are reports that the poverty proportion has gone up to 40%. There has hardly been a half per cent employment growth in the organised sector for a 6 to 7 per cent growth rate in output. An other element of worry is that currently oil imports are absorbing 9 to 10 billion dollars out of export earnings of around 30 to 33 billion dollars and oil consumption is rising at a very high rate.

8. The Finance Minister is keen on a fiscal responsibilities act, which would possibly place a limit on borrowing by the Finance Minister. But if he himself is not willing to accept the responsibility when he is in power how will others agree to that bill being passed?

9. I welcome the Finance Minister's intention to give more autonomy to the Reserve Bank of India. I also welcome his desire to give more power to Bank Boards. I am glad he is not thinking of closing weak banks. His intention of divestment of public shares to the private sector in all government owned activities is a good idea. But, the fear is that ultimately the burden will fall on government financial institutions, which will become weaker on that score.

10. This is probably the softest budget in recent Indian financial history. By not facing up to the challenge of the fiscal crisis, he has made it more difficult to regulate the State Governments in terms of fiscal discipline. If the elder sister does not observe the code, why should be younger sisters do so?

11. I am afraid the international image of Indian democracy as capable of rising to a crisis is not vindicated in the current budget.