Promises long and bold
The most interesting feature of this budget is that it has long and boldpromises. Mr Sinha has taken up several serious issues which are difficultto implement such as labour reforms, downsizing of the government, paymentof user charges, etc. It is these which the general public and the industrywanted to hear. This has definitely generated a feel good factor.This budget cannot be definitely termed as a breathtaking one. You cannotprepare one in the current circumstances without running a political risk.
But it has the potential to deliver incremental growth. Mr Sinha has takenall classical theory textbook measures. Tax rates are down and so isinterest rate. This is certain to generate consumption. He has alsoaddressed sectoral issues such as increased depreciation on commercialvehicles to give a fillip to that sagging industry. But one cannot expectthe government to address every sector. Overall the budget is better thanwhat I had expected. One cannot experiment with economics when the countryis still under pressure and in that situation the Budget is commendable.
(R Seshasayee is managing director, Ashok Leyland Ltd)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
