Finance Minister P Chidambaram on Tuesday said the budget has attempted to clean up the tax regime and aims at spurring investment and implementing the goals outlined in government's National Common Minimum Programme.
Describing it as an investment-friendly budget, he said, "The budget is clean, without too much clutter. We have laid down a reasonably fair and transparent tax regime in which you pay taxes, bring growth and investment."
"It will also encourage FDI and FII inflows," he told a meeting of India Today Board of Economists in New Delhi.
The government's single cause of worry, however, remains outcomes and the delivery mechanism, he said, adding the implementation of programmes outlined in the Budget was in the hands of other ministries, state governments and local bodies.
"I am only in charge of delivery of agricultural and industrial credit and will follow the banks to ensure that the targets in these segments are met," he said.
Stressing on the delivery mechanism of public services, he said the Finance Ministry and Planning Commission would work out the details for monitoring the implementation of various projects.
"I have already met Planning Commission deputy chairman Montek Singh Ahluwalia for putting in place steps to measure development outcomes. We will see that the ministries deliver," he added.
The budget has to follow the guidelines stipulated in the NCMP, which focuses on agriculture, manufacturing and infrastructure, Chidambaram said, adding it has given a great deal of attention to these areas.
The Special Purpose Vehicle for funding infrastructure sector projects would be in place shortly and we hope to identify some projects for implementation under the Rs 10,000 crore (Rs 100 billion) fund, he said.
Chidambaram said the budget has attempted the first major overhaul of the tax system since the last major reform in 1997 and government will soon come out with amendments to both direct and indirect tax laws to simplify them.
"We will introduce bills to amend laws concerning direct and indirect taxes to make them more clutter-free," he said.
On the cash withdrawal tax of Rs 10 on drawing Rs 10,000 in a single day, a move opposed by political parties and people alike, Chidambaram said it was only a measure to keep a "tax trail" on all cash transactions.
"The tax is a huge success in Brazil and could work here as well," he added.
