The Hindu Business Line : Ancient wisdom for the Budget season

He is ‘the light of kings’ who has bounty, justice, care and grace, reads Kural 390 of Thiruvalluvar, as translated by Suddhananda Bharati, in a chapter titled ‘the grandeur of monarchy’. The Finance Minister, P. Chidambaram, adapted the couplet to read, ‘Generous grants, compassion, righteous rule and succour to the downtrodden are the hallmarks of good governance,’ towards the end of his Budget Speech.

‘Bounty’ has been evident in the form of higher direct tax collections, which doesn’t seem to surprise the FM. “I have always maintained that moderate and stable tax rates coupled with a tax administration that shows no fear or favour will bring high revenues to the exchequer,” he said, in paragraph 124.

Chidambaram, however, conceded that help came in the form of high growth rates, changes in attitude, information systems and technology, and ‘a lucky Finance Minister’!

While there can be endless debate on the ‘lucky’ claim, as well as on the other three features, viz. justice, care and grace, here is a quick look at what could have been the many Kurals the FM might have short-listed for his big speech on February 29.

Power of speech

‘A speech is speech that holds ears, and attracts even those that are averse,’ says the poet saint. Doubtful, you’d agree, whether we can expect audience to remain engaged during a presentation that goes beyond two hours, as in the case of Budgets. Thankfully, though, wake-up calls come in the form of disturbances!

“No foe defies the speaker clear, flawless, puissant, and free from fear,” declares Kural 647. But our elected representatives probably always need repeated reminders from the Speaker to stay calm.

Ministers

In a chapter on ‘ministers,’ Thiruvalluvar begins thus: “He is minister who chooses right means, time, mode and rare ventures.”

Budgets are possibly the best of times to weave in quotes, the way the FM did, citing a 1955 thought of Jawaharlal Nehru, as follows: “These goals can only be achieved by a considerable increase in national income and our economic policy must, therefore, aim at plenty and equitable distribution. We must produce wealth, and then divide it equitably. How can we have a welfare state without wealth?” Although Nehru did not use the phrase ‘inclusive growth,’ he actually spelt out the conditions for inclusive growth, argued Chidambaram.

Knowing proper time

Counsel in Kural 484 is to choose proper time and act and place so that you can win the world with ease. “When comes the season ripe and rare, dare and do hard things then and there,” urges the revered Tamil poet in his 489th couplet.

It is no rocket science that loan waiver and relief for farmers, coming as they do with a fast-track implementation by June 30, coupled with tax bonanza for individuals couldn’t have come at a better time, with elections not far away.

Judging strength

Elections are a trial of strength with rival parties at play. The trial happens through the Budget, too, because the proposals come in for a hefty dose of dissection from all quarters.

The FM, I’m sure, should be drawing strength from Kural 472, which assures, “Nothing hampers the firm who know what they can and how to go.”

Another couplet has a valuable lesson for finance professionals: “The outflow must not be excess no matter how small income is.”

A comforting line from the FM exhorts Honourable Members to note ‘that not only will I achieve the target for fiscal deficit under the FRBM Act, I have also left for myself some headroom.’

Worryingly however, the ‘strength’ chapter of Valluvar also cautions, “Wealth amassed quickly vanishes sans level if one lavishes.”

Another warning, apt in the context of taxation, is that “even the gentle peacock’s plume cart’s axle breaks by gross volume.”

D. MURALI

http://Detaxification.blogspot.com

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