The United Progressive Alliance has begun its new innings with a budget aimed at finding a road to economic stability
It is not Basic Instinct. It is not the Gettysburg Address. It is neither sexy nor momentous. But if you had expected a simple budget that would ease the pain of global recession, spur economic activity in villages, create jobs and put more money in people’s hands, Finance Minister Pranab Mukherjee delivered today.
As Mukherjee spoke, the stock market started falling, apparently in the absence of big-bang announcements. To make matters worse, he made a very direct statement that he is not changing the corporate tax rates. But in reality, the capital market has something to cheer too. He is raising the threshold for public shareholding in all listed companies, private or state-run. This should result in share issues that otherwise would not have happened. Also, Mukherjee indicated that he will disinvest in public sector units through public issues. “The Public Sector Undertakings are the wealth of the nation, and part of this wealth should rest in the hands of the people. While retaining at least 51 percent government equity in our enterprises, I propose to encourage people’s participation in our disinvestment programme,” he said.