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The Rediff Jury's Verdict
'It has not done any thing special to push the economy'
Apollo Tyres vice-chairman Onkar Singh Kanwar on the Budget.
'We could still have extended exemption on taxes on the IT industry for another couple of years'
N Venkaswamy, MD, PSI Data Systems, on the Budget.
A business-as-usual Budget
"Under the Indira Awas Yojana, it is proposed to provide 1.2 million houses, said Sinha. Shouldn’t he tell us how many rural houses have been built thus far? I'm prepared to bet not even 120,000 houses. If so, isn’t a target of 1.2 million homes an unattainable pie in the sky?" says Dilip Thakore, former editor of Business India and Business World.
'We have become satisfied with $ 33 bn forex reserves and therefore decided to tax export incomes which is regressive'
Vikram Thapar, vice-chairman, Karam Chand Thapar & Bros, on the Budget
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'Why should the private sector invest in public sector banks?'
"Sinha has said the public sector banks will not be privatised. This will have a very negative effect in terms of incentives, hardwork and profitability," says Dr U Shankar, director, Madras School of Economics.
'This year's 'feel-sad' aspects have undone last year's 'feel-good' factors'
''The Budget does not hold out any promise to swadeshi industrialist, it does not contain any specific provisions to lighten their burden or
offer additional protection," says S S Bhandare, economic advisor, Tata Services Limited.
'There are going to be bigger problems for our economy one year from now'
"This would have been a harsh Budget -- much needed -- if the FM had slashed revenue expenditure drastically and provided more for infrastructure development. An opportunity has been lost," says Tarun Das, director-general, CII.
'The rural housing contribution of 2.5 million houses is a good initiative'
V Suresh, chairman and managing director, the Housing and Urban Development Corporation, on the Budget.
'The govt can achieve and even surpass its 'realistic' divestment target of Rs 100 billion'
'Regarding the concern over the cascading effect of the increase in the tax on dividends, I would have the issue examined closely and take corrective action if necessary,' says Finance Secretary Piyush Mankad.
'The govt has chosen the easy way out by loading extra taxes on the salaried class'
"This Budget was a tremendous opportunity to put in place some long term policies on the fiscal and infrastructural fronts. It was wasted," says Dr Subir Gokarn, chief economist, NCAER.
'Budget attempts to please govt employees at all costs. Are they holy cows?
"Our government wants to fill up potholed roads by taking away 20% of the profit of software firms whose fortunes are linked not to the Indian economy but that of the US," says Prof R Vaidyanathan of the Indian Institute of Management, Bangalore.
Hail Sinha for offering a Budget for the new economy
"Yashwant Sinha has obviously made up his mind that the future of India lies not in the commodity economy of the past but in the ideas economy of tomorrow," says Pritish Nandy.
'This Budget seems to be too piecemeal'
Neeraj Roy, Managing Director and CEO, hungama.com, on the Budget.
'High incomes wherever and in whatever sectors
should be taxed'
"It is not very rational to exempt all SC people from income tax. There are
highly educated SC/ST people in the North-east and elsewhere. There is no reason why they should not be taxed like the salaried classes," says senior BJP leader K R Malkani.
'Income tax should have been spread evenly on all segments including agriculture and services'
Institute of Economic Growth Director Dr B B Bhattacharya on the Budget.
'Duty cuts will facilitate the setting up of vendor hubs'
"Compaq, which has a manufacturing facility in India, sees an opportunity to expand the production capacity within the country," says the company MD Balu Doraiswamy.
'That the people can lives under an umbrella of security comes at a price'
Lt General Satish Nambiar, Director, United Services Institute, on the Budget.
'The Budget has become more of a media event'
''Exporters run a business like anyone else and make money. There is no
reason why they should be permanently exempted from paying their dues to
society at large," says Devina Mehra, director, research, First Global Securities, Bombay.
Personal taxation: No major surprises
Taxation consultant S Radhakrishnan of Ganesh Jagadeesh & Co on the Budget.
Sinha delivers on his promise to 'bite the bullet'
As the market digests the Budget, the reaction over the next few days would be matured and a
rally cannot be ruled out. In a sense, the market has discounted most Budget proposals,
says financial
journalist R C Murthy.
'The biggest shortcoming is the failure to address fiscal deficit'
"The focus should have been to strictly control the government expenditure. On
the revenue side, the emphasis should have been to widen the tax base by
including some tax on agriculture and services," says Naresh Takkar, Executive Director and Chief Rating Officer, Investment & Credit Rating Agency.
'The 5.1% fiscal deficit is the highest forecast since liberalisation began'
"I can't see anything that has made buying of an overseas company by an Indian company easier. We may see a separate notification from the Reserve Bank of India," says R Sreesankar, Chief Investment Officer, DSP Merrill Lynch Asset Management India Limited.
'Overall, the Budget is good for rural India'
"In terms of venture capital, in the software industry in particular, one can expect NRIs to repatriate funds," says Sunil Ramani, director, Ramani Legal Services Private Limited, Bombay.
'Indian industry will become less competitive'
"The economy is heading towards a debt trap. The divestment of government stake in public sector banks cannot be a solution to the problem of their sickness," says M K Pandhe, general secretary, the Centre for Indian Trade Unions.
Budget proposals disastrous: Opposition
They claimed that the proposals amounted to a sell-out of the country's interests.
Reforms stopped mid-track, say industrialists
The first Union budget this millennium has evoked a mixed reaction from the corporate world of Calcutta. The general view is that reforms have not been taken to their logical conclusion.
Back to Part I of the Rediff Jury's verdict on Budget 2000
Dun & Bradstreet Budget Special |
The Run-up
Budget Process |
Budget Hotlinks |
NDA Government & Economy
Official Web site of the Ministry of Finance: Budget 2000 document
Ministry of Finance: Economic Survey 1999-2000
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