Revenue road paved
Ved Prakash Chaturvedi* 
Business Standard — March 1, 2002

The Budget is an important event in the annual life cycle of an economy. This Budget was placed with the backdrop of low interest rates, low inflation, moderate oil prices, slowdown in industrial growth, high fiscal deficit but robust agricultural growth. The key imperatives for the budget, therefore, were a focus on fiscal rectitude, additional impetus to industrial growth, aligning various parts of the economy with the low interest regime and additional agricultural reforms.

Correspondingly, attempt has been made to increase government revenues by divestment and enhancing the scope of the taxation. There seems to be additional competition for Indian industry from foreign goods as customs duties continue to come down.

The one snapshot comment that needs to be made is that the Budget is another logical step in the direction of liberalisation and globalisation of our capital markets and economy. The FII cap on investments has been moderated, taxation for foreign investment now is on a more level playing field.

Overseas investment norms for companies and mutual funds have been liberalised. Subsidy reforms for Urea and Oil sector have been carried forward.

* The author is CEO, TataTDWaterhouse