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'Debt is going to be the new mantra'

Udayan Bose

The direct result of the roll back of the corporate dividend tax, from 20 per cent to 10 per cent, is not increasing income to the shareholder. But instead of paying 20 per cent dividend tax, the tax will be 10 per cent, therefore the rest will be saved in the company, therefore increasing shareholder value.

Debt is going to be the new mantra. For too long we have been trying to catch our tail on equities and have more or less ignored the debt market. Three positives on debt -- one, the debt clearing house, two, the lowering of small investment saving rate and three a higher thrust on gathering debt for the infrastructure and corporate sector.

This Budget does nothing dramatic for Foreign Direct Investment. A Budget is not the place for FDI direction anyway. But FII investment will go up as a result of the Budget. FDI is difficult right now, as the rest of the world is in a slow-down phase

Udayan Bose is chairman and chief executive, Lazard India Limited.

Budget 2001

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