Budget

The reactions to the budget have been varied and predictable. Barring BJP, which only saw a streak of communalism in it, the proposals have largely been welcomed. While the fixed income groups have welcomed the increased exemption limit and adjustment of tax slabs, especially for women and senior citizens, the industry despite its dismay at persisting with corporate tax rate, has benefitted from an excise duty reduction. The 60,000 crores worth of loan waiver, funds for which are still being found, is causing tremors among the banking circles and a slide down in the stock markets. A similar uncertainty also persists around the Pay Commission, whose report is expected by March-end. The Finance minister has again made no provision for implementation of the revised pay scales. Nonetheless, the liberal pay outs have also created a feeling that the ruling party may call for early polls to capitalize on the feel-good factor. To say the least-a populist budget.