India’s best hope is that the Budget due February 2015 chooses growth and jobs
Abstract:
The presidential address to Parliament on June 9, 2014 had focussed nearly exclusively on projects and schemes, eschewing policy. Therefore, many had eagerly awaited the budget speech for a policy vision of the new government. Unfortunately, it too left observers guessing on whether the government would tackle tough reforms or rely principally on better implementation.
Had this been the budget of the United Progressive Alliance (UPA), arguably it could have passed as spelling directional shift. But coming as it does from a government that has just scored an unprecedented victory on the platform of growth, development and jobs, it feels incremental. Such is the ambiguity of the message that the outgoing finance minister P Chidambaram has gone on to claim, unjustifiably in my view, that this is his interim budget without the humour and inspirational quotes.
The budget surely has features that sharply distinguish it from the Chidambaram budget. It offers steps to minimise future tax disputes and surprises. It contains credible proposals to accelerate building of infrastructure. It promises to develop entrepreneur-friendly legal bankruptcy framework for small and medium firms. It introduces several steps towards trade facilitation. And it even proposes to reform the Apprenticeship Act, thus touching on labour law reforms.