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.
Hindustan Times




Zeb Reply:
April 21st, 2013 at 10:47 pm
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
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Anonymous Reply:
April 21st, 2013 at 11:35 pm
Same prophet ordered killing of jews when it suited him. That is what is called Taqiyya.
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Zeb Reply:
April 22nd, 2013 at 11:29 am
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:
April 22nd, 2013 at 5:20 pm
Unlike your prophet, I sleep only with adult females.
Zeb Reply:
April 22nd, 2013 at 5:23 pm
Well, that says a lot about who you are! Promiscuous ****!
Sumit Bose Reply:
April 23rd, 2013 at 3:25 am
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:
April 24th, 2013 at 1:10 am
You are being disrespectful to your lusty Prophet.
RAVI Reply:
April 24th, 2013 at 12:21 pm
does that include ur mother as well.
Anonymous Reply:
April 24th, 2013 at 2:19 pm
May be in your Islam one sleeps with mother..That’s your culture not ours.
RAVI Reply:
April 24th, 2013 at 4:15 pm
butchers(qasai) of kanpur are no.1 laundebaaz.may be u have bad experience of them.
Anonymous Reply:
April 24th, 2013 at 5:27 pm
OK..now that too is Mohammad’s territory..Caliph Omar Mohd. ki g@@nd marta tha.
akb Reply:
April 24th, 2013 at 6:42 am
both ur point is lie.
Sumit Bose Reply:
April 22nd, 2013 at 12:17 am
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:
April 22nd, 2013 at 4:11 am
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:
April 22nd, 2013 at 6:00 am
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:
April 22nd, 2013 at 7:08 am
@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:
April 22nd, 2013 at 11:12 am
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:
April 22nd, 2013 at 11:22 am
Cutlets! You make me laugh out loud! Lots of love Rana.
Sumit Bose Reply:
April 22nd, 2013 at 12:17 am
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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