Budjettison it
So the famed Union Budget 2009-2010 is out. For the first time in my life, I 'followed' it minute by minute and must say my understanding is a tad better. Since I really dont understand a great deal, it would be bordering insolence if I venture a comment on how good or bad it is. Instead, I have been trying to assimilate all the shenanigans shooting out from that legendary suitcase in the pic.The markets have crashed, boomed and tanked. Yesterday was the largest ever budget day fall, with the Sensex shedding a whopping 850+ points. I can sum up the market sentiment in U2's song 'But I still havent found what I am looking for'.
Interestingly, many industry leaders have welcomed the budget proposals. As I continue to sieve through the innundation of budgetary articles, analysis, reactions, comments what appears to be coming out summarily is that it is a neutral budget with some black boxes. These black boxes are 1. Silence on how to fund the huge fiscal deficit 2. Silence on a clear disinvestment roadmap and 3. Complete bypass of FDI roadmap
For me and you, there is hardly any difference. (Btw I realize most of my readers are not based in India:-)). The exemption for personal income tax has been raised by Rs 10,000. I doubt how much is that going to help?
But I still hold one opinion of yesterday's financial treatise. And this view is backed by months of diligent interest of the Indian political backdrop which pummelled the BJP and Left out ushering in 5 years of unfettered rule by the Congress. This budget is a big THANK YOU to the voters who made this victory happen. NREGA allocation up by 144% (!!) speaks volumes, and any informed observer would know that NREGA was the biggest factor behind the Congress' victory in May 2009
Labels: Budget, Congress, India, Indian Economy