Given the environment and circumstances in which he operates, the Union Finance Minister has done a good job.
The Budget has a number of good measures. The objectives and intentions set out are very laudable, particularly the reducing of fiscal deficit to 5.1 per cent and setting the target of gross domestic product (GDP) growth for the next fiscal at 7.6 per cent.
The implementation of these objectives is not a job of the finance ministry only. The job remains with various concerned ministries to do the needful.
So, what we need to see now is how the government improves its capacity to implement programmes and projects, to see that these objectives are actually achieved in reality.
I cannot see any major negative in the Budget. I cannot say that the excise duty hike is a negative. Because, I think given the circumstances, resources have to be augmented.
Otherwise, the deficit will not be in control and there will be other consequences. The question is — how will the overall environment be managed? Also, the rise in inflation will depend on how things are done. If you can eliminate wasteful expenditures, you will reduce cost and hence inflation.
The excise duty hike will not affect diesel cars. Petrol cars may be affected, as this hike comes at a time when petrol car sales have been on the decline.
Also, there are things like deregulating diesel that the finance minister can do nothing about, as these are unacceptable to the government.
R C Bhargava Chairman, Maruti Suzuki
