Budget 2014

Arun Jaitley's budget 2014, is practically the same as the interim budget of the outgoing UPA-II .as there was hardly any time to recast it  for a newer dispensation. In gross Jaitley surrenders revenue of 22000 Cr in direct taxes and  makes up  27000 Cr in the indirect ones.Some customary tweaks have been applied in customs and excise, for smaller aims.With a large middle income electorate in view ,the budget has a bias on urban up scaling with housing sector related loan and tax sops.The future contours of NDA regime are  seen drawn in light pencil ,on  token allocations to  newly proposed schemes and  ideas, addressing skill and employabilty..These must be forged to shape in due course to aid growth trajectory.

       With no changes in revenue the confidence of the FM to contain fiscal deficit  comes from the strength derived from the  Modi mantra of governance and the hope to reach far higher level of   divestment in this fiscal ,given an animated  market. The Sensex has reacted positively though with more than usual caution ,as the day progressed.Budget 2014 needs to be largely seen as a trailer for the main feature slated for 2015.The NDA would need to ride out this year as much on hope as it must on  execution of intents,in contrast to UPA-II that had relied more on providence.

 Pub : Economic  Times ;July 14
          Hind Business Line ;July 11
          Asian Age   July 11