Balancing the holy trinity of growth, inflation and currency is increasingly becoming tough for the policy-makers. The Reserve Bank of India may continue with its hawkish stance on policy rates to anchor inflation expectations, but it has seemingly no silver bullet to deal with price rise without hurting growth.

Inflation starts to pinch growth

Business Standard

In the rough and tumble of Assembly polls, CPI(M)&rsquo;s Asim Dasgupta and Trinamool Congress&rsquo; Amit Mitra cross theoretical swords in Khardah.

A practical test for economists' theories

Gujarat has been accused by many of hiding information on many counts in the anti-Muslim violence of 2002. Yet, a reality check of the state administration puts it among the most conducive places to do business in India.

Moving ahead on economics

Meticulous C P Joshi is triggering comparisons with his predecessor, Kamal Nath, a man of the world.

Slow and steady goes the road ministry

Kanimozhi is usually composed. But when she emerged from the meeting of the Dravida Munnetra Kazhagam (DMK)&rsquo;s general council earlier this week, she was a little irritated. &ldquo;Why do you want my visuals? This is quite unnecessary,&rdquo; she told the photographers outside the party&rsquo;s headquarters.

Newsmaker: Kanimozhi, DMK MP

SANJAYA BARU: Welcome to the discussion on the Union Budget. The initial reaction of the capital market was very enthusiastic but subsequently there&rsquo;s been a certain moderation.

Budget 2011: A missed opportunity?

An interesting cocktail of growth orientation with inclusiveness and fiscal prudence. When one looks beyond the numbers, at the overall direction, there are distinct trends. There is clear recognition by the polity that a nine-plus per cent growth rate is not sustainable without fiscal consolidation.

Comment: Siddhartha Roy

Despite the strong performance of the economy in 2010-11, the outlook for 2011-12 is clouded by persistently high inflation and rising external risks. The Budget assumes a GDP growth target of 9 per cent, which is on the optimistic side, as we expect GDP growth to moderate to 8.3 per cent in 2011-12. By lowering the fiscal deficit target to 4.6 per cent in 2011-12, from 5.1 per cent in 2010-11, the Budget reiterates its commitment towards medium-term fiscal consolidation.

Comment: D K Joshi

Nothing really. He&rsquo;s weighed and balanced to keep the money coming in.

My Budget: Prasad Bidappa, Fashion Designer

My Budget: Shubha Mudgal

Multiple concerns have, of late, raised questions about India&rsquo;s continuing growth story. Persisting high inflation threatened a hard landing for India&rsquo;s economy. Potentially volatile portfolio capital flows were perceived to be financing a high current account deficit. An emerging infrastructure financing gap threatened the pace of investment.

Comment: Shikha Sharma

The finance minister has increased the service tax burden on life insurance policies. In ULIP, where service tax was earlier charged only on mortality and fund management charges, it will now be charged on a portion of the premium other than what is allocated for investment. In case of traditional endowment plans, the service tax rate has been increased from 1.03 per cent to 1.545 per cent.

Comment: Rajesh Sud

Organic farming has been given a boost. Almost 40 per cent of food that rotted because of inadequate storage will get saved to some extent. The Rs 300-crore for neutra-cereals is a positive step. Direct subsidies to the poor is also good.

My Budget: Ramdev, Yoga Guru

Budget 2011 has clearly set the stage for the coming financial year with a growth expectation of 9% and projected gross fiscal deficit of 4.6 per cent. A closer look at the Budget financials reveal that gross tax revenue is projected to rise by over 18% on a year-on-year basis on back of FM&rsquo;s confidence in sustaining growth in the economy.

Comment: Deepak Kapoor

The Union budget 2011-12 is a growth oriented exercise with focus on the social sector. I am grateful for the jubilee package of Rs 200 crore to Goa for the maintenance of its greenery and beaches. Once the money arrives, we will decide how best to use it.

Comment: Digambar Kamat

The budget shares out the fruits of higher growth and cutting waste: expenditure rises without higher tax mobilisation. The reform vision of growth, inclusion and governance is broader and deeper than just passing the many pending bills. There is a beginning in the use of technology to deliver subsidies and tax reforms, reducing waste and, thus, shifting social spending towards education, health and insurance that creates capacity.

Comment: Ashima Goyal

Macro-economic stability is back in vogue. The gross fiscal deficit has been reined in at 5.1 per cent of GDP and is expected to go down further to 4.6 per cent in 2011-12. Government expenditure is expected to grow by just 3.3 per cent over the revised estimates of 2010-11. Compared to the budgetary estimates, this will be 13.4 per cent higher. These growth rates are much lower than the trend seen in the past five years when the year-on-year growth rates averaged at over 19 per cent a year.

Comment: Mahesh Vyas

Given the poor performance in the past, Power Minister Sushilkumar Shinde has reasons to celebrate a record 9,700-Mw capacity addition in the current financial year so far. A record performance in successive years for a sector traditionally considered laggard among infrastructure sectors certainly has something to cheer about for the minister.

Record show powers Shinde's smile

In terms of capacity addition over a Plan period, the country is set to miss its target again.

Another Plan gone wrong

The Confederation of Indian Industry (CII) attributes this to the government&rsquo;s lost focus on development against the backdrop of political instability and an intensified agitation for a separate statehood to the Telangana region.

Political unrest does not let Andhra get down to business

&ldquo;Tell them you are not a Bengali.&rdquo; The survival tip from a top Gorkha Janmukti Morcha (GJM) leader was almost ominous.

Gorkha protests bleed north Bengal

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Page 389 - Economy & Policy Analysis