A Reformist Budget Which Will Propel Growth

Overall, an excellent budget. Within the framework of the United Front's common minimum programme, the finance minister has certainly done a wonderful job. Allowing buy-back of shares by corporates, putting an overall ceiling of 60 per cent for inter-corporate investments and loans and allowing FIIs to hold upto 30 per cent in companies and a programme for progressive convertibility on the capital account are welcome steps.The various changes in the Companies Act and the announcement that the government would replace the Foreign Exchange Regulation Act by a Foreign Exchange Management Act are positive moves. The review of the minimum alternate tax and the exemption of the exporting community from the purview of MAT will boost corporate sentiments. This is a growth- oriented and reformist budget that will stimulate demand and propel growth.