The Tiger meows !!!

The build-up had started- the World Economic Forum at Davos , the mergers and acquisitions ,the improved rating by S&P,the India Poised campaign,the conferences and debates on business channels - everyone started taking notice.Continued development and growth had finally started to seem like reality.And the budget - scrutinized carefully as ever - was meant to boost it further.

Sadly it proved to be an anti-climax.Politics had more of a part to play in the budget than desired.The same finance minister who gave a dream budget a decade ago is now wary of anti-reform sentiment echoed not only by the Left but also from within the party.That they lost the elections in Punjab- mainly due to inability to control price rise- was on the back of the mind.And so came the aam-aadmi budget.

Increased focus on agriculture is a good initiative, however the way it is implemented is doubtful.Increasing fertilizer subsidies hardly proves to be beneficial to the farmers as most of it is cornered by fertilizer firms-most of which are in the public sector.Another anti-inflationary step taken is to ban futures trading in wheat and rice.Banning forwards trading has been much argued as regards to its impact over price rise.It not only has a negligible effect on overall prices but may even stabilise future prices.

The increased allocation to education and health indicates the social nature of the budget and is welcome.However there is a fear that most of the higher education spending will be directed towards quota implementation leaving little for anything else.There was hope that private funding boost would be given to primary education - it remained only a hope.Instead it is levied through a cess indirectly whose efficacy is questionable.

With a view of forthcoming elections in mind, the various 'yojnas' and employment 'schemes' also attracted increased spending.The jury is still out on whether these indeed provide employment and whether its employment that we actually need to focus on.Ironically, corporate sector- which also provides employment- will have to deal with taxes on ESOPs and increased dividend distribution tax.The IT industry- largest employer in the organized private sector - has been now burdened with MAT.

The Finance Minister chose to take the oft traveled route - most probably due to political compulsions.He did say that reform polices would continue outside of the budget.Lets hope he fulfills that promise.It doesn't seem like a budget of a country that has witnessed astonishing growth in the last few years.But then again- its India.

My friend's pet cat got an extra bowl of cat-food today.At least someones happy with the budget!