Rediff Logo Business Find/Feedback/Site Index
HOME | BUSINESS | BUDGET 99 | CHAT TRANSCRIPT
February 27, 1999

BUDGET 1999-2000
COLUMNISTS
INTERVIEWS
ECONOMY
INDUSTRY
FINANCE
ECO SURVEY
RLY BUDGET
PROCESS
BUDGET 98-99
BUDGET 97-98
ARCHIVES

'The projected fiscal deficit is a major risk factor'

Email this opinion to a friend

Dhruv M Sawhney

I feel the anomalies that existed in the capital goods industry earlier still remain or have got worse.

The power sector was earlier subject to a 20 per cent basic customs duty. Now it seems normal power projects can be imported at a duty of 5 per cent and mega power projects at a duty of 0%. The excise duty on capital goods has been raised by 3% from 13% to 16%. While for raw materials such as steel, it has only been raised by 1%.

The positive aspect are the rationalisation of duty structure, stress on water, devolution of power to the Gram Sabhas and a move to stimulate the housing sector.

Many committees have been formed and I only hope that implementation does not remain far behind as it has during the past. The projected fiscal deficit, with or without adjustment, is a major risk factor unless government expenditure can be substantially curtailed.

The rise in interest payments and unsure weather conditions are factors that necessitate a greater watch on revenue collection, and therefore PSU divestment must start immediately.

Dhruv M Sawhney is a past president, CII

Budget 1999-2000

Business News

Tell us what you think of this Budget report
HOME | NEWS | BUSINESS | SPORTS | MOVIES | CHAT | INFOTECH | TRAVEL
BOOK SHOP | MUSIC SHOP | HOTEL RESERVATIONS | WORLD CUP 99
EDUCATION | PERSONAL HOMEPAGES | FREE EMAIL | FEEDBACK