Monday, 29 February 2016

Biggest takeaway from the Budget is that there are no new ideas: P Chidambaram

Former finance minister P Chidambaram addressed the media on the Union Budget 2016-17 that was presented today.

Here are the highlights:
  • There is no major initiative to increasing productivity of crucial crops 
  • I am happy that UPA's schemes are being continued
  • In the last 2 years the govt had turned its back on the the rural, social programmes. Three areas crying for attention are rural economy, private investments and exports
  • The government is unaware of problems of the core sectors- power, steel mining, cement, oil and gas. Many projects are stranded and there is little new investment
  • There is no mention of exports. I think after 14 consecutive months of negative growth, the government seems to have given up on the exports front
  • Lukewarm reference GST. No promise to accommodate legitimate criticism of Opposition. Government continues to be stubborn
  • In many cases there was very poor increase in Minimum Support Price (MSP); in some cases there was zero increase in MSP
  • The third budget of a government which presented two forgettable budgets is expected to be political
  • Government has wisely refrained from projecting the growth rate for 2016-17
  • Government is boasting that they collected more tax than ever. It was only due to excise on Crude and not from corporate tax

Also read:
Budget 2016: Why agriculture topped Arun Jaitley's 9-point plan to change India

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