INTRODUCTION
The main challenges outlined by the Finance Minister, Mr. Pranab
Mukherjee, while presenting his Budget speech for the short term
and long term perspective of the Indian economy are:
- to lead economy to high GDP growth rate of 9% p.a. at the
earliest;
- to deepen and broaden the agenda for inclusive development;
and
- to improve delivery mechanisms of the government.
In keeping with tradition, the Budget proposals are a mixed bag
of the good and the bad. Some of the biggest disappointments in the
Budget proposals are that there are no provisions for any reforms
in the FDI policy, the public sector enterprises such as banks and
insurance companies are to remain in the public sector and there is
a projected fiscal deficit of 6.8%. The major positives are the
proposals to abolish Fringe Benefit Tax (FBT), Commodities
Transaction Tax (CTT) as well as to phase out surcharge on income
tax starting with its elimination in this Budget from
