The Hindu Business Line : Budget blah-blah

TIME was when the Finance Minister as well as his entire Ministry would clam up about a month before the general Budget, so as not to be accused of causing any leak. In fact, the standard response of Finance Ministers at all public interactions during this period was "it is now time to listen and not to speak. The speaking will be done on Budget day."

But things have changed. The Finance Minister, Mr P. Chidambaram, was on television just recently, categorically stating that he would not be raising income tax rates in the coming Budget. Veteran media hands used to the earlier days of golden silence could not believe that the Finance Minister had actually talked about tax rates so near the budget, and those who missed the TV programme went about enquiring whether such a statement had indeed been made. Given the trend of low tax rates since Mr Chidambaram's "dream Budget" of 1997, the Finance Minister's statement would normally not have created much flutter. But there was a genuine apprehension this time that tax rates could move up because that is the focal point of the Left parties' alternative plan to raise resources as opposed to public sector disinvestment.

The Left parties have been relentlessly pressing this issue and the Finance Minister's pre-Budget declaration worked like a reassuring balm for taxpayers. But doubts still linger whether Mr Chidambaram would be able to hold his position till February 28 or even after that till the Finance Bill is passed sometime in May.

Mysterious disappearance

Caught-in-traffic is no longer a lame excuse in Delhi. The capital's chaotic traffic takes a turn for the worse during January, what with the Republic Day parade rehearsals and the increased VVIP movement on the roads.

The pleasant January weather is an added attraction for foreign dignitaries planning a visit to India and the Prime Minister too makes many calls outside his office and residence in this month, as if invigorated in the new year.

So it was no surprise to delegates at a conference when they were told that the traffic chaos had "gobbled" up a Cabinet Minister. It so happened that on Wednesday, the Petroleum Minister, Mr Mani Shankar Aiyar, had two functions to attend in the morning, but turned up at neither at the appointed time. Waiting organisers made frantic calls to his residence, only to be told that he had left for the functions and could have been held up in traffic. But Mr Aiyar, it seems, was elsewhere.

Putting in a late appearance at one of the functions, he "blamed" his disappearance, not on the traffic, but on a call from his party President, Ms Sonia Gandhi, who had summoned him in connection with the upcoming AICC session in Hyderabad. "But obviously, I can't tell you what transpired at that meeting," the Minister said, with a glint in his eye.

People were left wondering whether the Minister had moved up a few political notches or was some "help" required from the public sector oil companies.

Rajasthani savvy

The competition among the various States to woo investments, either from multinationals or big business houses, has now become a common feature, be it Microsoft's Bill Gates, Volkswagen or Infosys' Narayanamurthy. The recently concluded Pravasi Bharatiya Divas also saw nearly a dozen Chief Ministers seeking investments from Non Resident Indians (NRIs) in their own style.

There was, however, an interesting exception — Rajasthan. Here is the take of Mr Narpat Singh Rajvi, the State's Minister for Industries, NRI & Public Enterprises: "We extend no invitation to anybody, NRI or Indian industrialist. A shrewd businessman will go where he can make Rs 5 more, not because he is from Rajasthan or Andhra Pradesh. Hence, we have not come here to woo NRIs."

The key to attracting successful investments lies in creating a good industrial climate, and providing practical incentives and opportunities to improve business. Rajasthan, the Minister claimed, has a sound industrial climate, and there has not been a single lockout in 10 years.

According to Mr Rajvi, if Uttar Pradesh and Bihar are providing the manpower resources for the country, it is Rajasthan that is giving the financial brains. And in making money, the Rajasthani businessman would go anywhere if he sees the opportunity. Even in the North-East, you will find Rajasthanis setting up business, despite the problems posed by ultras, because of the opportunities, going by Mr Rajvi's interpretations.

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