New Delhi, July 06: Expressing disappointment over
lack of any reformist measure the economists today termed the
Budget 2009-10 a "moderate" one with emphasis on
infrastructure, rural spending and housing.
"The budget overall was a disappointment in the context
of the huge expectations everyone had in terms of the bold
brave strokes that Mukherjee was expected to paint," research
firm Gartner analyst Partha Iyengar said.
Other than an oblique reference to PSU disinvestment, the
Budget lacked some expected bold measures like aggressive
disinvestment, FDI reform, focus on governance and
transparency of money being spent, he said.
"The stock markets have voted on the tax budget presented
today. However, this fall could be partially due to the
markets having run up on the back of disproportionate
expectations," KPMG India CEO Russell Parera said.
Parera said the economic survey set out some aggressive
direction for the economy but the government has repeatedly
sought to play down the impact of one day, be it the Budget or
the credit policy.
Moody`s Economy.com, the research arm of rating agency
Moody`s, said the country announced a "moderate fiscal budget"
given the heavy debt burden and large fiscal deficit
projection of 6.8 per cent of GDP for 2009-10.
"... budget may not please all, but is a fair effort by
the government... the authorities have set an ambitious
target: boosting growth to nine per cent at the earliest while
promoting inclusive development," Moody`s said.
Thus, policymakers took expansionary steps in areas
including trade finance, farm subsidies, rural health, food
security for poor households, and environment, Moody`s
economist Sherman Chan said.
Another global rating agency Fitch termed the FY`10
budget as "neutral", particularly for the corporates from a
credit perspective, and said even the relief measures taken by
the government would have marginal impact.
"While the new budget seeks to continue providing relief
to export hit sectors and also provides for tax and other
benefits to other sectors such as oil and gas, autos, gems and
jewellery, the benefits on account of these, in Fitch`s
opinion, are likely to be marginal," the agency said.
Financial services firm Goldman Sachs said the "budget
is expansionary, given the emphasis on infra, rural spending,
and housing". It retained its GDP growth view of 5.8 per cent.
"It`s a good budget under the present circumstances as
the Finance Minister has little choice. However, fiscal
deficit at 6.8 per cent is worrisome," he said adding FBT
should have been simplified instead of scrapping.
Dun & Bradstreet COO Kaushal Sampat said, "The Union
Budget 2009 -10 is largely positive, and seems to be an
‘aspirational’ budget in terms of what it seeks to achieve
over a long term horizon," he said.
Bureau Report
