If you allow me to boast, I can say- I told you so! Read my post of July 1, where I had said that the Finance Minister will use this budget to make a political statement. He will not use this occasion to please big business and investors, at least on the face of it.
It panned out exactly the way I had stated in my post. Let me go a step further and say that while the FM was not understood fully and the market overreacted.
Market is like an emotional, tantrum throwing pampered girlfriend. She is not happy if the FM is not willing to play a generous boyfriend who would bring heavens to her feet in the manner she wanted him to. She is very possessive too. She wants her boyfriend to convince his loyalty in so many words.
And Pranab Babu has refused to play that role. While he has made many right noises, he has not communicated them in a language that pleases the market. He with his experience in dealing with complex situation and conflicts, high hopes and crude realities, he stated, unlike his predecessors, everything in a no nonsense way.
In his own words, he has taken a calculated risk by trying to pump prime real economy, the rural India, in order to generate demand and push growth. It may be a Herculean task but no one would debate the need of creating as much cushion as possible to minimize the impact of global shocks. Does he have any other option if we all want our domestic growth story to get strengthened? It is a good beginning in our serious effort of decoupling - an often-used phrase.
If you do an objective review, you will find it is a budget that embarks upon the much needed agenda of tax reform and simplification. It leaves some money in the pockets of consumers, it makes a big promise to halve the number of poor, it helps farmers, and it also deals with most serious issues like education and girl child. It follows the basic principles of economics, rather than robin hood economics!
All he is saying is give me time and I will address the aspiration of all sections. Why are we then acting like restless child? Pranab Babu is a politician first. Allow him to do his primary job responsibly. The rest will follow.
well Mr.Sanjay ....i want to ask what will be the impact of BUDGET globally...
Since global leaders crying to prevent protectionist measures in framing the policies and let there be even growth accross the globe...
What India did was right on its behalf when JAMBO-economies like America Chian going for Protectionist measures...
yes its great..but iam worried about our dearest prime minister sab....he should not listen to G8 leaders and shake his head for evrything WHICH IS NOT IN OUR ECONOMIC INTEREST...
But iam sure ,he is an ECONOMIST FIRST then prime minister ........
BEST OF LUCK to MR.PRIME MINISTER for his visit.......
i agree with your view, and it`s clear from now on all budgets will be like this... mostly focusing on rural India... politically correct budgets which will appeal to the vote base.
the reform agenda will be taken off budget; i think they want budget headlines only to focus on Rural India & not dilute it`s message by including things like disinvestment, reform or fiscal deficit which most people in Rural India don`t understand & would give opposition chance to politicize the budget by saying it favors the rich or is not pro poor...
so my gut feel is that all budgets will be pro rural & reforms will be taken separately.... so the headlines will always remain ... it`s a pro Rural India Budget.
Budget will lose its importance if it does not address the core issue of fiscal deficit. There would not have any harm done to political crowd. It would have helped to markets to rise which would make way for IPO of PSEs and divestment of partial stake of PSU..These issue no secrets even at time of his budget speech as the same was included in the Economic Survey and President`s address to full parliament..I have strong feeling that he forgot the fact thatleft is no longer his ally and is in no position to pull the rug under the feet of Congree!! Otherwise, Can it be a hide and seek game he played though costly? Please remember if capital markets are not sizzling how can he get funds to finance his deficits?
Pranab is a master and carry out his job in perfection. I find this budget better than dream budget of Chidambaram. This budget is for the masses whereas budget presented by earlier FM meant for few selected rich and big players. Three cheers.
| NIFTY 
