India Inc questions Finance Minister

Is it much to do about nothing, a day after the Budget?
Well, in his first industry interaction, the Finance Minister has been frank about lot of issues.
But, there do not seem to be any solutions or the mention of a definitive roadmap on any of the big policy matters.
A day after the Budget, Pranab Mukherjee was in a candid mood, telling the industry that it was a conscious decision to push up expenditure and allowing FRBM targets to slip.

Mukherjee said, “ I had no option except to depend heavily on borrowings. In 7-8 months I shall have to start the strenuous work of fiscal tightening. I will address the fiscal deficit issue, as soon as the impact of meltdown is over. The government has to accept higher level of fiscal deficit in the short term."

With plainer speak on issues like GST, the minister indicated that all states might not come on board by April 2010.

“I know there are differences and do not rule out the possibility as in the case of VAT, when some states followed later,” he said.

And then the question many journalists, analysts and economists and corporates are asking—where is his divestment agenda?

"The Budget is not the document for mentioning disinvestment details," Mukherjee answered.

India Inc showed up in full force to meet the Finance Minister after his Budget, but were left wanting on many matters from tax benefits for R&D to affordable housing.

Shivinder Mohan Singh of Fortis Healthcare, said, ''This time the interaction has been different from the past many years. The fact that he is open and positive and says I agree with all of you but it has to happen at the last time. This is a departure from the past.''

Adi Godrej of Godrej Industries, said, "Generally I think it was a very positive meeting."

Are these politically correct reactions? Perhaps, but the questions persist—is the FM treading the path of big ideas with no serious roadmap of implementation?
Meanwhile, the industry awaits more clarity on policy matters by early August when the Budget gets passed in the parliament.

Source: profit.ndtv.com