March 2013

India is heading straight for economic failure post-Chidambaram’s budget as a direct result of the lack of meaningful economic reform, saysHeritage Foundation, an important conservative thinktank in the US. Assessing finance minister, P Chidambaram’s budget, Derek Scissors of the Washington-based organization said that it “leaves India on the same, failing course it’s been on of undisciplined spending and unrealistic expectations”.

The Indian economy is in dire health, he said, not only because Indians’ incomes have stagnated, income growth slowed and consumer inflationis high, but because manufacturing that should lead the Indian economy that would create jobs for the swelling ranks of young Indians is refusing to take off.

Mr. Gerard Colaco: The problem with Indian finance ministers is that they are tinkers, not leaders, much less visionaries. If a man of Mr. P Chidambaram’s learning, knowledge, experience and ability could present a budget as insipid as the one tabled on 28th February 2013, then there is not much hope for this country.

There has been needless tinkering with surcharges both at the individual and corporate income-tax levels. These are short-sighted methods to raise revenues. The best way to shore up government revenues and the country’s economy is by bold economic reforms aimed at stimulating growth. Revenues will automatically rise in a resurgent economy.