AN INCLUSIVE BUDGET FOR INDIA & BHARAT

THESE ARE EXTRAORDINARY TIMES, DIFFICULT times.With our economy badly needing stimulus, and tax revenues plummeting, what choice does a finance minister have but to allocate funds for big government projects, for employment generation schemes and for helping people below the poverty line get at least two meals a day? Let us remember that the revenue has plummeted by a whopping 4.8%, and the increase in expenditure is primarily due to the stimulus package.
    While I understand the justification for a high fiscal deficit this year, I wish the finance minister had laid out a clear road map on how he will reduce the deficit from 6.8% to 3% in the next three to five years.
    I am happy that there are several infrastructural, employment-generating schemes, and subsidy schemes that have received higher allocation in this Budget. I am all for these. Unless we can make life better for every Indian — the urban and the rural; the rich and the poor; and the educated and the not-so-well-educated — this country will not become a developed nation. In that sense this is an inclusive Budget.
    However, the intended results will be achieved only if we ensure the desired outcomes, the required efficiencies, and eliminate corruption. Unfortunately, the record of successive governments in delivering the promised outcomes is rather poor. I wish the government appoints a commission with eminent men and women to oversee the efficient implementation of each mega scheme. Else, most of the funds earmarked for these mega projects will end up in the hands of middlemen as the late prime minister Rajeev Gandhi had lamented once.
    Right from 1994, I have been saying that any tax exemption should be limited either to export companies with small profits, or for a limited period. Hence, I am not happy with the extension of tax exemption for my industry till 2011. In my opinion, my industry must be prepared to pay its share of taxes without any exemptions. Scrapping of FBT is most welcome, since it was a mere harassment tool, and did not achieve the necessary results.
    When the UPA won the elections with a good majority and formed the government without any need for support from the Left, the country expected this government to bring in major reforms quickly. It was even expected that the Budget would unveil several major reform initiatives, including disinvestment, increase in FDI limits, and a flexible labour policy with a good safety net. This has not happened. It is a disappointment.
    I would give 7 marks out of 10 for this budget.

NR NARAYANA MURTHY CHIEF MENTOR, INFOSYS TECHNOLOGIES

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