Budget of signals



India’s finance minister P Chidambaram has succeeded in controlling the country’s fiscal deficit and averting a sequence of the following events: a credit rating downgrade, a fall in the rupee and an outflow of capital.

But it is important to realize he hasn’t addressed the structural reasons why the fiscal deficit was out of control. What he did was to freeze almost all government spending other than salaries. So the defence budget was eviscerated, subsidies held back and everything from overseas assistance to new paper clips put on hold.

This is not a sustainable way of doing things. It was an emergency action by the finance minister to get out of the immediate financial rut that the government had slipped into.

Underlying this emergency budget action, however, was the subtext of what the Congress-led ruling coalition expects the budget to metamorphose into once it gets the chance. And that subtext was the same old tax and spend line of all United Progressive Alliance budgets.

Chidambaram signalled this in various small ways. He raised taxes on the rich. He increased social outlays which the country can ill-afford. He put off, once again, settling the Vodafone retroactive tax dispute. His ministry desperately wants to armtwist Vodafone into paying, but fears the repercussions on foreign capital inflows at a time when India is running a record current account deficit. Soaking multinational firms is politically the most expedient financial act — they have no constituency inside India. Hence the sudden question mark over the Mauritius tax treaty.

But all of this means that the fundamental reasons why India is facing such a massive fiscal problem are being left untouched. Government subsidies and social outlays are too high. The revenue base remains too narrow. Chidambaram is tinkering with those problems.

Growth will inevitably suffer given that the government has pruned its own expenditure so much, but failed to persuade the private sector to fill in the gap it is leaving. So 4.5 per cent growth is now quite possible.

What New Delhi seems to be gambling on is that the international environment will turn around for India. Oil and commodity prices in general are expected to soften through the year, say firms like Goldman Sachs and J.P. Morgan This will allow interest rates in India to fall and, bang, the system begins to enter a virtuous cycle. This would allow the budget to be both fiscally sound but also growth inspiring.

What is notable, of course, is that the future of the Indian economy is now dependent on what happens outside the control of the government and, indeed, beyond the shores of India. Sadly, the standard condition of a third world nation.

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  • Chellam

    This refers to the article THE NO-FRILLS BUDGET by NANI PALKHIVALA in todays HINDUSTAN TIMES.
    I remember two of PALKHIVALA’s comments even now. He said that if the tax level was 100% no one will pay tax and if the level is 0%, Govt. can’t run. What is the optimum level? This question has reduced the tax level in our country. The other one : When the tax rules will be such that an ordinary man can understand, without the necessity of approaching a professional and file his/her tax return?
    Great PALKHIVALA !
    Chellam

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  • Zdravkosmith

    I can not satisfaction this Budget .Government is give a benefit to limited people and not importance to the middle and Lower class.

    http://smallbusiness.yahoo.com/advisor/answers/fashion-and-accessories-20120918214345AAqs2Jz.html

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  • Sumit Bose

    Duhh!!! just what is Zia Mian upto? I thought this blog is his mission to propagate his “need to tell”; and he tells that he has a Jew as his “friend”!
    May i copy for this “taqqiyaa” one of God Almighty’s “own words” :

    O ye who believe! Take not for friends, unbelievers rather than believers: Do ye wish to offer Allah an open proof against yourselves? K0ran 4:144.

    I can put out another 5 verses from the same source in the same vein, which are even more strident.
    Are you Zia Mian abandoning the basic commandments of your terror manual, or that you are just what you have always been a “ghatiya Taqqiyaa” ?

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    Zeb Reply:

    Bose sb. Must appreciate your ability to misconstrue something to this level. The Islamic prophet himself made reconciliations between Muslims and Jews. He wanted us to stay together. Muslims love Moses and Jesus as much as they love Muhammad (Peace be upon them).

    Read: http://www.beliefnet.com/Faiths/2003/04/Why-Muslims-Love-Moses.aspx

    [Reply]

    Anonymous Reply:

    Same prophet ordered killing of jews when it suited him. That is what is called Taqiyya.

    [Reply]

    Zeb Reply:

    There’s only one taqiyya I know of and that I use to sleep at night! I have got two! Wanna hop on?

    Anonymous Reply:

    Unlike your prophet, I sleep only with adult females.

    Zeb Reply:

    Well, that says a lot about who you are! Promiscuous ****!

    Sumit Bose Reply:

    Zeb, what type of “****” is one who sleeps with 4 women or better still, the historical person who slept with 16 women and 1 9 year old child, besides several undocumented sex-slaves?

    Anonymous Reply:

    You are being disrespectful to your lusty Prophet.

    RAVI Reply:

    does that include ur mother as well.

    Anonymous Reply:

    May be in your Islam one sleeps with mother..That’s your culture not ours.

    RAVI Reply:

    butchers(qasai) of kanpur are no.1 laundebaaz.may be u have bad experience of them.

    Anonymous Reply:

    OK..now that too is Mohammad’s territory..Caliph Omar Mohd. ki g@@nd marta tha.

    co Reply:

    your mama being one of them

    akb Reply:

    both ur point is lie.

    Sumit Bose Reply:

    Zeb many thanks for the adjective, I shall convey that adjective to my mother! I am constrained to put you in the “ghatiya Taqqiyaa” band, not because of the accident of your birth, but in your option to willfully bandy deception.
    Firstly, the “most exalted human being ever” personally lead the attacks and massacres of these Jewish tribes, Banu Qurayza, Bani Nadeer and Bani Al Mutalaq. All males of these tribes were slaughtered well into nightfall. The same night the “most exalted human ever” took as his booty (among materials and goods) the just widowed women of the head of the tribes and they are respectively: Rayhanna (orphan of the chief), Safiya Bint Huyar (just widowed) and Juwaiyria Bint Alawi (just widowed).

    As a Taqqiyya you would certainly concur with the apologists that he married/made sex-slaves because he “made reconciliations” with the Jews.
    However, the fact is so recorded by the chroniclers of the “most exalted human ever” with abundant glee and pride. This certainly would not be put out today, as it would be construed a brutal war crime, but to the mind-set of the !slam, these are recorded with pride as “achievements” of the “most exalted human ever”.
    Suffice it to say, what was started out was totally completed by Caliph Umer’s reign, when all Jews were massacred or made to flee from the Arabian Peninsula. That is a unique record of “reconciliation”, for you to ponder over!

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    Swaroop Mitra Reply:

    BoseDa, wonderful detail! And its Deja Vous all over again! The newly created Islamic Republic of Pakistan is on record for something on track! Hindus there have ceased to figure as any statistical entity, and the Bengali converts are not behind too, from slightly over 40% to less than 10% as of now; but we all know that the “reconciliations” are in progress, till they are able to “emulate” the glorious example set for this group of converts.

    Zeb Reply:

    I didnt know there is a whole internet brigade who excel in the ability to misconstrue facts and present them to the public.

    Sumit Bose Reply:

    @Zeb you have all the time to meet the “historical facts” i have put forth, and i would be delighted if you could correct the facts quoted straight from the H@diths.I welcome you to factually “debunk” my “facts”.
    Quite obviously, you are more content to shoot the messenger as you are empty on facts. Does there exist any basis for any exchange, as we are on two very different levels. Please marshal your facts and then we can have a healthy debate.
    That precisely is the wall that all the converts put up, midgets on facts and giants in the spin-zone, and ever so prone to dive for cover behind the veil of “hurt sentiments”.

    Rana Bhoumick Reply:

    Zeb, you cutlets will always be in denial mode, the translation is wrong, the context is wrong, etc etc, but the necr0phile, ped0phile, mass-murderer, torturer, slave -merchant will always be the”most perfect human ever”!

    Zeb Reply:

    Cutlets! You make me laugh out loud! Lots of love Rana.

    Sumit Bose Reply:

    Zeb many thanks for the adjective, I shall convey that adjective to my mother! I am constrained to put you in the “ghatiya Taqqiyaa” band, not because of the accident of your birth, but in your option to willfully bandy deception.
    Firstly, the “most exalted human being ever” personally lead the attacks and massacres of these Jewish tribes, Banu Qurayza, Bani Nadeer and Bani Al Mutalaq. All males of these tribes were slaughtered well into nightfall. The same night the “most exalted human ever” took as his booty (among materials and goods) the just widowed women of the head of the tribes and they are respectively: Rayhanna (orphan of the chief), Safiya Bint Huyar (just widowed) and Juwaiyria Bint Alawi (just widowed).

    As a Taqqiyya you would certainly concur with the apologists that he married/made sex-slaves because he “made reconciliations” with the Jews.
    However, the fact is so recorded by the chroniclers of the “most exalted human ever” with abundant glee and pride. This certainly would not be put out today, as it would be construed a brutal war crime, but to the mind-set of the !slam, these are recorded with pride as “achievements” of the “most exalted human ever”.
    Suffice it to say, what was started out was totally completed by Caliph Umer’s reign, when all Jews were massacred or made to flee from the Arabian Peninsula. That is a unique record of “reconciliation”, for you to ponder over!

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    engrich Reply:

    picture of durga was brought from shanghai whom u worship as god.

    brhmno ka indians ko chutia bana ke lootney kee kala ko hinduism kahte hain.u were *** lickers and boot polishers of britishers who starved to death half the population of bengal bihar and orrisa

    tell me one achievement of vedic rule in india.

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  • Anonymous

    sumit bose , you are unneccessarily harsh on zia , and just trying to pick up a fight. This is his least controversial write up , and there is nothing but to praise Miss Miller. The surname however points to scottish , albeit jewish parentage. The scottish bit is the clue why she is left leaning. But zia is foolhardy in assumimg one miss miller and the chant of gandhi will bring peace.surrender of jerusalem and half of westbank to jews will only placate the israelis.
    ONLY USA CAN RAM ROD A PEACE DOWN THE THROAT OF ISRAELIS
    But then there is JEWISH LOBBY IN USA to get past , And that is a 1000 ton guerilla in the room.
    Though common sense dictates israel has everything to gain from peace

    ALL THE CONTRACTS IN MIDDLE EAST WILL GO TO ISRAEL
    Then think who are the greatest benefeciary of this conflict and the THREAT OF ISRAEL
    Anglo Saxons to be precise , else HOW CAN YOU HAVE A AL YAMAHA 40 BIILION POUND(yes pound not dollars) arms sale to SAUDI

    [Reply]

    haka Reply:

    who gains from no peace between indian and pakistan. Even iisreal becomes the broker in selling American weapons. Multiple blocks, same goal, to swindle nations of Asia and Africas.

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    Abu Ahmed Reply:

    The Rothschilds do not have a presence in Iran – if Iran’s regime is changed, that will allow a whole lot of MNCs entry into it, apart from the Rothschilds (who were the real owners of the East India Co.). So one finds the sole super power along with his poodles going after Iran, of course for stopping nuclear weapons production in that country. From WMD to WND – the area would be rendered wide open for all MNCs along with Christian missionaries to work there in full force. History cannot be stopped from being made, I am afraid, we may only delay it for some time. Who lands first from the sea / space: colonial capitalist or christian missionary? israel is an extension of the West’s contain Islam and Arabs policy in the middle east; things will settle down there when the bankers / arms producers want them to.

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    Anonymous Reply:

    but rather than blame the west WHY DONT THE MUSLIMS DO SOME SOUL SEARCHING, why they are at the MERCY of the west , because they are SHIT , and why they are shit , because they cling on to a DOGMA and even worse on a hearsay written 1000 yrs after the actual incidence(read hadith)
    MUSLIMS DID THE SAME TO INDIA AS WEST IS DOING TO MUSLIMS.
    Scientific knowledge is THE ONLY KNOWLEDGE, the rest written 1600 , 2000 , or 5000yrs ago are all BUNKUM

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    engrich Reply:

    MUSLIMS DID THE SAME TO INDIA AS WEST IS DOING TO MUSLIMS

    shan u are fool and will remain foolish.when britishers took power level of literacy in india was 93%our gdp was 35%.
    bengalee british reduced gdp from 35%to 1 %and literacy from 93% to 7 %.
    all beautifull cities from murshidabad to ahmedabad were built by them8000 kilometers GT ROAD to irrigation was their gift to india.
    u foolish bengalees were cleaning their shoes to get clerical job in their shipping companies.

    aurangzeb was ruling on 25%of world .we were superpower.turkey was superpower of 14th centuryfrom austia to india.
    taimur conquered 6 subcontinent and 68 countries.
    u achievement is nothing except hiding wealth in temples.starving india and spoil ecology of india.

    Anonymous Reply:

    Thanks for the nice joke

    engrich Reply:

    challenge if u have doubt.ibn sina was father of medicine.

  • Anonymous

    “In Israel, women couldn’t be combat pilots, he said, quite simply, because they were women. Therefore, Miller had better stayed home.”

    Looks like muslim countries allow women to be pilot.

    By the way this MUSLIM has cleverly skipped Boston bombing episode. A clear case of closet Jihadi.

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  • raka

    Desi kheey dushmaan haar jagaha fheeel gaya hein with dual agenda. Khoi jagaha naaheey choodeey and has even enrolled india kheey converts as their doost.

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    ranks Reply:

    bakri kheey khaal mein bhediya haar jagaha.

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  • Roy

    It would be better for Zia Haq to worry about women in Islam…what a joker, Israel knows how to protect itself.

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    Zeb Reply:

    Zia must be worried about “women” in Islam. Muslims take good care of their women. Except those radicalized a##holes. Those are the ones who are making a bad name for Muslims.

    Islam has always been about respecting your women and treating them well. It’s their faux followers who have gone astray though!

    Peace.

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    Faulitics Reply:

    Zeb, I wish what you are saying is true. But it’s actually more than a few radical a##holes and they control these societies which label themselves as “Islamic”. You should not have a very rosy and idealistic view about islam without seeing how its practiced in reality. Read this article from slate
    http://www.slate.com/blogs/quora/2012/10/22/is_islam_misogynistic.html

    The first step in reform is to understand that the ideology has serious problems.

    [Reply]

    Zeb Reply:

    Roy. They control these societies because it lacks great leaderships. The educated ones do not try their hands at politics letting the uneducated ones become leaders. Take for example the MLA of a Muslim locality in New Delhi. To me, he seems to be one of the most illiterate politicians of our country! And then there’s overall lack of interest in acquiring education in the Muslim society. That’s double whammy! When you do not have quality education, you cant have quality jobs. That says a lot about the present condition of most of the Muslim societies.

    They are trying to regain the lost ground but it will take some time before they come at par with other progressive societies. Probably a few more whammies.

    As for the ideology, I’m dam’n sure it’s about peace. The facts they talk about are all misconstrued. True Islam is all about peace. What these radicals practice is not Islam. They are faux followers and do not truly represent it.

    And dont make me for another adamant follower. I’m a spiritually irreligious Muslim. I connect to God sans the irrational religious dogmas.

    I’m open to inter-faith discussions. I need to find the truth. And truth begins with peace. But what I’m experiencing here is some very derogatory talks!

    Rana Bhoumick Reply:

    Zeb, ignorance is always bliss and to get out of that “blissful” state, if you attach any “value” to your education, then get to Ali Sina’s site called faithfreedom dot org and get a honest read straight from the “terror manual and the incriminating H@dhiths, if you bear any degree of honesty within you, you will never ever state that bloomer you have made “True Islam is all about peace”. It has always been a terror manual, devoid of any concept of Universal brotherhood.

    Zeb Reply:

    Love you both, Rana and Relay. May God brings peace to you and all of us!

    Relay Reply:

    Hi Zeb, You sound like a nice person, but u r walking into a Islamic booby trap. You are trying to defend the indefensible and once you are on this track, the only progress will be to self destruct like to the two guys who did the Boston bombing ( and like thousands of others). Let me tell you I am no enemy of Muslims. Islam is proving to be clearly an ideology that is hate filled and destructive, you can see it world over.

    Sad fact is as more muslim men become hardcore religious, the more they are likely to cause hate and destruction. That is repeating again and again world over, in every terrorist attack, the perpetrators are highly religious. Not surprising that their violence can be directly co-related to the Islamic inspired ideology.

    My 2 cent advise to you, get away as far as possible from this islamic ideology, it will do no good in any way. You can be an atheist or choose any other means of reaching out to god (and spirituality), that will make you live in peace with out having to defend evil ( and all the pain that you go through in doing so). your next generation will be thankful you made the right decision. A well wisher.

  • Faulitics

    Forget about flying. Woman in some islamist societies can’t even drive. Zia will not write about that even though he says he is a “Muslim affairs” writer. Woman are treated like chattel in most Islamist societies but Zia may e considers that as “Muslim internal affairs”. He has to focus on Jews, who the Arabs have taught him to hate through their poison ideology masquerading as a religion.

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    whistling budhha Reply:

    good point . writer must make notice

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  • Anonymous

    I hope she succeeds!

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    engrich Reply:

    she is spy

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    engrich Reply:

    http://www.youtube.com/watch?v=6u4btaTaj90&feature=youtu.be

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  • engrich

    Former Dutch
    Islamophobe and a former leading member of far-right Dutch politician
    Geert Wilders’ party Arnoud Van Doorn visited the Prophet’s Mosque in
    Madinah to pray and say sorry for becoming part of a blasphemous
    film. Doorn was among the Freedom Party leaders who produced the
    blasphemous film, Fitna. Last month he reverted to Islam after an
    extensive study about the religion and the Prophet (peace be upon him).
    He said that the worldwide outrage against the film made him study about
    the Prophet (pbuh) and that eventually led to his conversion.

    He headed for Makkah
    to perform Umrah after meeting the two imams of the Prophet’s Mosque,
    Sheikh Ali Al-Hudaifi and Sheikh Salah Al-Badar, who enlightened him on
    how to lead the life of a good Muslim and confront challenges facing
    Islam in the West. A member of the Dutch parliament and The Hague City
    Council, Doorn announced his decision to accept Islam on his Twitter
    profile. He also posted a tweet in Arabic declaring that “there is no
    god but Allah and Muhammad is his Prophet.”

    At first, other users took the news as a joke. After all, an active
    supporter of a notorious Dutch hater of Islam, Wilders, he repeatedly
    approved Islamophobic statements and public actions, and personally
    participated in them. But Doorn, who now serves as a regional adviser
    at the City Hall in The Hague, personally confirmed his decision to
    practice Islam in an official letter to the city mayor. Most recently,
    the politician filed a formal application to the mayor of the city to
    allow him to perform prayers obligatory for Muslims during his working
    hours.

    “I can understand people are skeptic, especially that it is
    unexpected for many of them,” Doorn told Al-Jazeera English satellite
    channel. “This is a very big decision, which I have not taken
    lightly.” “In my own close circle people have known that I have been
    actively researching the Qur’an, Hadith, Sunnah and other writings for
    almost a year now,” he said. “In addition, I have had numerous
    conversations with Muslims about the religion.” Driven by his party’s
    anti-Islam discourse, Doorn decided to dig in for the truth about the
    religion himself.

    “I have heard so many negative stories about Islam, but I am not a
    person who follows opinions of others without doing my own research,” he
    said. “Therefore, I have actually started to deepen my knowledge of
    Islam out of curiosity.” The 46-year-old has continued on The Hague
    Council as an independent candidate since splitting from Wilders’s
    party. Doorn’s decision to embrace Islam has won mixed reactions in the
    Netherlands.

    “According to some
    people I am a traitor, but according to most others I have actually made
    a very good decision,” he told Al-Jazeera. “The reactions are generally
    positive and I also received quite some support via twitter. It feels
    good that people who do not know me personally have understanding of my
    situation and support me in my choice.”

    Asked if he now regretted joining the Freedom Party, he replied: “I
    have learned that every experience in life has a purpose. However, with
    the knowledge I have today, I would have undoubtedly made a different
    choice.” For the Dutch politician, finding Islam was finally guiding him
    to the true path in his life. “I have made mistakes in life as many
    others. From these mistakes I have learned a lot,” Doorn said.

    “And by my conversion to Islam I have the feeling that I finally
    found my path. I realize that this is a new start and that I still have
    much to learn as we

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    Sumit Bose Reply:

    Engrich Mian, Doorn has done immense good to two communities at one stroke; he has increased the IQ levels of both the Christian and the Moslem communities and he has to be congratulated for that feat!

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    engrich Reply:

    muslims are not jahil like hindus.they have produced best scientis in the past.read ibn sina ,ibn rushd.except budhhdists u vedics has contributed nothing to humanity.

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    Sumit Bose Reply:

    Engrich Mian, you dont have to go too far, just look out of your window if you are living in any of the Mini-Pakistans in any Indian city and you will realize without any prompting, and get a very fair over-view of the great levels of education and sophistication of your band of converts. Wish you all had some integrity and had followed your voting for the creation of Pakistan and had packed and left for that na-Pakistan. You just stay back and spit on the same plate that you eat. You are truly shameless.

    guest Reply:

    .“Hindu India” we find no difference between the words and actions of
    gandhians, marxists, Hindu terrorists, Dalal Street Dagalbajis.
    Everything in India is created, promoted and sold for the benefit of the certai class of people

    Raj Nath Reply:

    K2e dont like it, then do us all, including yourself, a great favour and fcuk off to that ****-house named naPakistan, made by and for filthy and dirty converts as you.

    engrich Reply:

    most of the muslim run countries literacy is 90%plus.we have largest number of illetrate in the world

    [Reply]

  • engrich

    What Brahminism did to India?

    Destroyed democracy in India

    Removed equality for women

    Prevented Philosophy and Science from developing.

    Divided people from socializing.

    Made life a misery to most of the population

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    Anonymous Reply:

    I guess you are talking about Islam.

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    engrich Reply:

    see present india

    [Reply]

    Anonymous Reply:

    Yes, it is based on present India where muslims have polluted the liberal culture.

    engrich Reply:

    i think u are talking about butchers of kanpur.

    Anonymous Reply:

    Some butchers who follow arabic traditions live in Kanpur..many were butchered in 1992.

  • suresh kumar

    Is your friendship with Isrealis conditional to whether they love Palestine?

    In that case how many friends in Kashmir and Pakistan do you have who love India? SHould you not shun all the Kashmiris and Pakistanis who don;t want a strong united India?

    [Reply]

  • Abhi

    “An aspect of Israel that goes largely unnoticed is that the fiercest
    critics of its policies are Israelis themselves. Alice Miller is one
    such Israeli”.
    Wish it were the same for the community to which Zia belongs.

    [Reply]