Five things in this Budget appeal to me. First, the strengthening of the rural economy- be it the Bharat Nirman business plan, schemes for irrigation, education, electrification or telecom.
It is critical for India to ensure equitable growth. Second, the focus on industries that create jobs.
The third positive step is the thrust on infrastructure, a prerequisite for India to realise her potential.
The healthy increase in the outlay and creation of SPV that would partially use our strong foreign exchange reserves to fund projects in this area are clear signs that the government too realises the importance of this.
The fourth initiative worth commending is the fiscal discipline that the government has managed, despite the tsunami disaster and lower proceeds from divestment.
Finally, the focus on making the Indian Institute of Science a world-class university is heartening.
However, there are concerns too. The 'pause button' on the Fiscal Responsibility Management Act means that we will have a major catching up to do from 2006-07 onwards on the fiscal deficit front.
Also, the fringe benefits tax covers many heads of expenses that in a service industry are nowhere in the nature of benefits for employees.
Given the intent of this tax, one can only assume that this is an unintended anomaly and will receive attention for appropriate correction.
Suresh Senapaty is executive vice president, Wipro Ltd.
