Once considered as a top secret affair, thebudget related matters has initiated an openapproach with domesticaudience and has now gone global
Finance minister pledgesthe fiscal deficit to reduce it 5.3% of GDP and cut it further to 4.8% in 2013-14
Open Budget approach has succeededCredit rating agencies is no longer threat With right action planChidambaram restoredIndia’s global credibility
Investment analysts have upgraded their expectations for India Billions of dollars have flowedin, strengthening the rupee and thus helping tame inflation This has enabled the RBI to cutinterest rates, further improving the investment climate.
Earlier Budgets constantlytinkered with tax rates on this or that item People with advanceknowledge could make moneybuying or selling items before the tax rate changed, so secrecy was deemed paramount.
In the bad old days, the budget speech would first specify proposed government spending, notably theincrease in annual Plan spending
It would then specifyexpected revenue, andsay this left too large agap to be filled entirely by deficit financing (which meant printing money).
So, the Finance Minister would say, I am raising taxes on the followingitems — and a long list would follow, often hundreds of items.
He sometimes cut tax rates, typically before an election.Such tinkering made it possible to profit from budget leaks, sothere was total budget secrecy