India Budget 2005-2006
Finance minister Chidambaram has produced a Budget to please a thousand constituencies, avoiding controversy and radical ideas in order to preserve a fractious coalition already shaken by the state election results. A relieved stock market shot up 144 points. Since he cannot please everybody with tax cuts, he has pledged to spend thousands of crores on every possible good cause.
Though, preparing a Budget in a coalition in not an enviable task, Chidambaram has given an impression of being at ease, perhaps, counting on his earlier experience. It is also believed that Chidambaram has mastered his strategies well in advance; else he would go astray, especially with divergent partners like the CPM and the RJD.
Chidambaram would start the customary pre-budget consultations with agriculturists and industrialists in separate sessions to be followed by meetings with trade union representatives and economists.
As the initial indications point out, both Prime Minister Manmohan Singh and the Finance Minister have announced that the 2005-06 Budget will undertake "comprehensive tax reforms".
Taking the cue, corporate India has already pitched for lower tax rates while seeking to lobby against withdrawal of the multiple tax breaks which renders the system cumbersome and non-transparent.
The entire Nation, as also the leading economies, have high hopes, especially since the Prime Minister himself is an acclaimed Economist.
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