NEWSLINKS
BUDGET 2000 LIVE!
BUDGET ON REDIFF
D&B BUDGET SPL
ECONOMIC SURVEY
RLY BUDGET
BUDGET: RUN-UP
BUDGET PROCESS
BUDGET HOTLINKS
Y2K BIZ FEATURES
INDIA & THE WTO
GOVT&ECONOMY
SPECIALS
INTERVIEWS
COMMENTARY
CREDIT POLICY
BUDGET 1999-2000
USEFUL INFO
ARCHIVES
SEARCH REDIFF

'It is a modern-looking Budget'

BUDGET 2000

G P Goenka

It is an extremely positive, strong, balanced and modern-looking Budget.

There are many positive areas in the Budget as the finance minister has increased rural expenditure, taken care to look after the below-poverty line people. Special announcements for venture capital funding, the infotech sector and infrastructure will boost the economy.

There are three negative areas in the Budget. Dividend tax has gone up, the surcharge on income has been increased and no solution has been proposed to bridge fiscal imbalances.

The salaried tax level is very reasonable compared to international standards. We were not expecting any kind of reaction

But he has doubled the food grain allocation to people below the poverty line. The rural sector expenditure has been increased substantially for water supply, education, rural housing. Insurance for the poor has been introduced. The very first point is his target for a growth rate of 7 to 8 per cent which will in any case eliminate poverty

There are 3, 4 areas of concern. The tax on dividends has been increased from 10% to 20% for corporates. The surcharge has been increased instead of being removed as promised earlier by the FM.

It is a retrograde step.

There are 3, 4 major areas that have been addressed for the knowledge-based industry. The tax break for venture capitalists will be a tremendous boost to this industry. They have been given concessions like no service tax or a very nominal tax on export earnings. They don't need obstructions and that is what this Budget had gifted in the form of no obstructions.

G P Goenka is president of the Federation of Chambers of Commerce and Industry.

Budget 2000 Live! | Budget on Rediff | Dun & Bradstreet Budget Special | The Run-up
Budget Process | Budget Hotlinks | NDA Government & Economy
Ministry of Finance: Economic Survey 1999-2000 | Budget 2000 document

Tell us what you think of this Budget 2000 coverage