'Budget is well thought out'

Would you call this Budget populist or reformist?

I wouldn't call it a populist Budget at all. It is a Budget that is reform-oriented. Just look at the heavy investment they are planning on roads (and that includes rural roads too), ports, airports, etc. All this shows that it is a reformist Budget.

At the same time, he has given a lot of concessions in direct taxes. He has looked at the problems of the pensioners and senior citizens. So, I would call this a Budget that is well thought out.

Where is the money for all the concessions coming from?

It is true that he couldn't do much because he is not generating too much money. But he has rationalised on indirect taxes. So that will help in generating money. Also, in duty structures also there has been rationalisation.

Are you satisfied with the announcements made for the power sector?

Even though he has not spelt out anything specific for the power sector except that the Electricity Bill will be passed, the Bill 2001 has got a lot of ramifications. He has talked about mega projects. It is quite likely that people who want to set up plants for 250 MW or 500 MW, if they confine to the conditions, can go ahead. Giving entry to interested parties in the private sector in India is welcome. Definitely, the reduction in duty from 25 per cent to 5 per cent on high voltage transmission equipment will have a greater impact on the indigenous manufacturer because all the requirements for the high voltage equipment is manufactured in India. So, what prompted them to reduce this alone is not known. Yes, he has covered very little on power sector mainly because APTRP scheme announced by the government earlier had a lot of implications.

The finance minister has announced a lot of initiatives in the infrastructure sector. Are you optimistic about these initiatives resulting in overall growth?

Definitely. His thrust on roads, ports, airports etc will definitely help the society in generating business and growth, creating employment, etc. When everything else grows, there will be pressure on the power sector also to grow and generate more power. That is why the power secretary said they intend concentrating on NTPC to generate power in the next five years. By then, with all the incentives given, we expect the electricity boards also to move ahead.

Does the Budget deficit worry you?

See, Budget deficit is high but one thing that I am happy about is, he was honest enough to say that. Every year, the Budget gives a lower figure and never achieved it. At least, now we can work on this basis.

Compared to last year's Budget, how will you rate this one?

Last year was very, very disappointing. He went on taxing everybody and made a big mess of the whole structure. He made the structure too complicated. It was a bad Budget.

Considering the situation, this is a Budget that should get 6 on 10.  When the finance Minister said that there should be more money in the hands of the consumer, I was expecting a lot of incentives on savings and more money. But what he has done is, he has doled it out in different ways, like reducing the price of goods etc. Unless the consumer spends, the manufacturing industry will not grow. The elimination of the 5 per cent surcharge on income tax will give more money to the consumer.