New Delhi:Fully rested after yesterdays bruising joust with the Opposition parties over rising prices, the UPA government today buckled down to addressing issues related to sustaining growth in the country's economy, and putting it on track to achieving the prized 9-10 per cent growth levels.
|Pranab Mukherjee leaves North Block for Parliament House to present the General Budget 2010-11. |
The fact that the Sensex began to sing soon after finance minister, Pranab Mukherjee, ended his speech may suggest that the UPA government would have provided the required assurance to the market place that it was moving on the right track. Or even, as one amongst the chatterati on television put it, the absence of bad news is good news in itself.
A balanced job
On the face of it, the budget appears to have pulled off a feat, seldom achieved, of being 'balanced.'
"The finance minister has done a good in balancing job... He has been able to contain the fiscal deficit at 6.9 per cent, which is very good," said Harshpati Singhania, FICCI president. He went onto express his disappointment with the increase in MAT, which he described as being ''the only dark spot.''
Rival industry body, CII, president, Venu Srinivasan said: "It is a very balanced and responsible budget. The growth will continue with this Budget. The changes in income tax slabs are a welcome step." He complimented the finance minister for a calibrated roll back of stimulus measures, which was as the industry had wanted it.
The changes in the income tax slabs should prove popular, especially with a younger generation of Indians, who are increasingly landing jobs as service providers just after college, or even high school, in an increasingly expanding economy.
Overall the tax adjustments will put more money in the hand of consumers, which is good news for the FMCG sector in particular- a good reason why the Sensex began to sing when it did.
The adjustments would also alleviate the impact of price hike in diesel and petrol, and the fact that automobiles and two wheelers have suddenly become a little more costly.