BUDGET 1999-2000
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BUDGET 98-99
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Generalities abound, where are the specifics?

Vinod Doshi

From the industry point of view, this is not a very strong Budget.

It is not going to do wonders for the economy either.

But the finance minister has done a lot on other fronts, especially for the housing and construction sectors. He also laid emphasis on rural development. But I want to know how many of the policies that Yashwant Sinha has spoken about, will be effectively implemented. In the past too we have seen Budgets that have said nice things, but delivered nothing.

There is nothing in the Budget to kickstart the economy. We had to think in terms of how we could get the consumer to start buying again. There is no indication that this Budget has thought of that aspect at all. If anything, the consumer's money is reduced in terms of income tax surcharge and higher excise duties.

This Budget will raise prices. The languishing economy called for a Budget with more teeth. I am quite disappointed with Sinha's second Budget.

The automotive industry has been completely ignored. I was not expecting a great deal, but I was expecting a reduction in the excise duties on vehicles. The passenger cars are presently paying a 40 per cent excise duty. This could easily be brought down to 30 per cent. This move would leave the buyer richer by a few thousand rupees.

Sinha said very little on specifics. Nowhere did he clarify how the funds will be generated. He did not say that this move will generate a certain amount of funds or this policy will entail certain amount of expenditure. He was talking in generalities.

Even on the infrastructure front, the finance minister speaks of a total earning of Rs 45 billion against the one rupee hike in diesel price. Somehow, I don't think that is enough. I hope he is counting railways too, because railways is the biggest consumer.

Allocating Rs 45 billion for infrastructure is not much. We need a lot more. This is because when you build roads, you start a chain reaction. The cement and steel industry both begin to pick up. Local employment begins to grow. At the amount the finance minister is talking about, I don't see this happening. It makes me wonder what the hell is going on!

Vinod Doshi is chairman, Premier Automobiles Limited.

Budget 1999-2000

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