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'There is no drastic change in policies'

Sudhir Jalan

The tax on corporates for dividends has been withdrawn, but now it would be charged in the hands of the recipients. So the common man will not be generally be very happy with it. It was visible in the fall on the BSE index as soon it was announced.

The finance minister seems to feel that we must follow with basic policies, with some adjustments here and there. So there is no drastic change in policies.

I don’t think it is an anti-farmer budget because the subsidies will have to be cut. There are no two ways about it. The farmer cannot have it good all the time. He has to pay as much any other citizen. He has not been paying any direct taxes. The reduction in subsidy on fertilizer is not the end of the world.

Corporate surcharge has unfortunately been raised. Though the two per cent Gujarat surcharge has been removed, there is a five per cent surcharge, which is negative. With the industry not doing well, another surcharge is not welcome.

The industrial growth would not be much affected by a bad Budget. It is more due to external factors. The industrial growth was bad last year not because of a bad Budget, but because of world economic factors. But there are signs of change, so we are hopeful that in another six months or so, Indian economy will start looking up.

I am an eternal optimist. The worst is over and I think we have crossed the hump. We will slowly recover, it would be a slow recovery, but not a fast recovery.

Sudhir Jalan is CMD, Bells Control Ltd and former president, Federation of Indian Chambers of Commerce and Industry.

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