The Union Budget came at a time of slowing manufacturing growth, and a widening fiscal deficit, caused mostly by high oil prices. Private sector investment spending has almost halted. Even the Economic Survey says that it is imperative to quickly revive investment sentiment, and give a big impetus to industrial production.
The budget 2012-13 was prepared against the backdrop of high interest rates, inflation above the comfort zone of policy makers, slowing economy and impending pressure of elections in 2014. Above all, the economy faced a rising fiscal deficit.
From a savings and investments perspective, the big news of the budget is the new Rajiv Gandhi Equity Scheme.
Between electoral analysis and the budget as a financial statement, the UPA needs a social budget of its eight-year tenure. As an experiment, the UPA was a tremendous collection of possibilities. Its social imagination was extraordinary, Shiv Vishvanathan writes.
Pawan Goenka, president, automotive & farm equipment sectors, M&M on Pranab Mukherjee's budget.
The finance minister has done it once again. Pranab Mukherjee has scored a perfect hundred to go along with Sachin Tendulkar’s much-awaited feat.
There is black money and black income, and there is corruption and bribery. These go hand in hand most of the times - but not always, Laveesh Bhandari writes.
The budget has been presented in particularly challenging times — and not all challenges from the economy. Fiscal deficit and high inflation continue to be the twin evils plaguing the country.
Some of the themes that dominated the discussions before the Budget included pro-growth, pro-investment, conditions for rapid revival, addressing infrastructure bottle-necks, improved governance.
In this year's budget, Pranab Mukherjee has essentially tried to consolidate the gains made as a result of the initiatives he had launched during the previous two budgets. Thus, in agriculture, there is no new initiative except increasing the target for agricultural credit to
Rs. 5,75,000 crore during 2012-13. This represents an increase of over
Rs. 1,00,000 crore from last year.
According to the Economic Survey, the healthy growth rate of 10% registered by services sector has insulated India from the global slowdown.
Among five key objectives outlined by Pranab Mukherjee to be addressed in the coming fiscal year was the need to address the issue of malnutrition in 200 high-burden districts.
In the Budget, the finance minister has chosen to walk a cautious path while the focus on growth is maintained. Markets look forward to the Budget as the direction of policy is very crucial apart from the proposals for various sectors. Ranjeet S Mudholkar writes.
Dubbing the Union Budget as 'anti-people,' Tamil Nadu chief minister J Jayalalithaa today said it reflected the 'continued policy paralysis gripping' Manmohan Singh Government.