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print versionIn the course of his budget speech, Finance Minister Pranab Mukherjee
earlier today rather deferentially, and not without a touch of pride,
referred to bank nationalisation by Indira Gandhi - forty years back
on July 14.
In the context of his assertion that the banking and insurance
industries would continue to remain under government control and the
claim that the 40-year old decision is the key to the current
stability of Indian financial sector in the midst global tempest and
meltdown.
He, however, made no attempt whatever to compare his current budget
with that historic move.
Obviously there is none of that flamboyance, the boisterous
mobilisations on the streets, and the huge political impact.
In a way, still this budget could be compared with that in terms of
its professed focus on the proverbial "Aam Aadmi" - the mascot in the
electoral campaign of the Congress Party.
This one has clearly made a striking break with the traditions set since 1991.
The focal mantra of neoliberal budget making - "fiscal responsiblity" - has been given a rather discourteous short shrift.
No "big ticket reforms" either.
Massive expansion in fiscal allocations in infrastructure and rural
developments, and social security schemes.
The BSE sensex nosedived by some 870 points.
Never mind, the political dividend cannot but be positive.
The ("reformist") path charted out by the Economic Survey preceding
the actual budget has just gone out of the window.
The Presidential address to the Joint Session of the Parliament on
June 4 last has acted as the bedrock.
That’s quite a bit beyond expectations.
Of course ossified minds would turn still more ossified and retreat
into denial mode.
But that’s not how the struggles in the coming days can be conducted
with any degree of credibility and effectiveness.
For detailed highlights: http://indiabudget.nic.in/ub2009-10/bh/bh1.pdf
Also see: http://indiabudget.nic.in/ub2009-10/bs/speecha.htm
July 6 2009
