New Delhi: Terming the Budget for 2007-08 as ‘conservative rather than ambitious´, leading economists today regretted that Finance Minister P. Chidambaram failed to capitalise on the buoyancy in economy and address problems of inflation, agriculture and unemployment.
“I was expecting bold measures given the buoyancy in the tax revenue... it is a conservative budget rather than ambitious,” B B Bhattacharya, Vice Chancellor of Jawaharlal Nehru University, told PTI.
Echoing similar sentiments, noted economist Jayati Ghosh said Chidambaram could have increased the tax revenue to take advantage of a bullish economy and high corporate profits. However, taxes have been lowered in various categories.
The country is facing mainly four problems — price rise, poor agricultural performance, employment and nutrition — and the budget could have been used effectively to address these problems, she said, while welcoming the increase in dividend distribution tax and ban on futures trading.
RIS Director General Nagesh Kumar said the budget has met overall expectation of people as it would help in sustaining the growth momentum.“The agrarian sector needed to be stimulated and the budget provides for improved rural credit, irrigation facilities and revival of extension centres among other programmes. These can facilitate another green revolution,” Kumar said.