Chidambaram is back at the Finance Ministry. So what can we expect from him? Tax cut? other sops?
Chidambaram’s thrid tenure as the finance minister came at a time when the country’s economic growth has plunged to a nine year low, inflation remaining high, low rupee rates, interest rates peaking and global economic uncertainty..
The failure to control subsidy coasts have started international community questioning the investment climate in the country. And to make things worse, light monsoon rain has raised the spectre of a drought, which could force higher spending and aggravate the fiscal situation.
To get the economy back on track, the finance minister will need to act tough. He may reduce the subsidies. Already talks are on about the LPG subsidy being planned to be restricted to poor families. The diesel prices hike announcement is likey after the President/ Vice President election. We can only hope that the hike may be kept at a low value.
He is understood as a man who doesn't feel the pain of the common man. Chidambaram's statement "we are prepared to pay Rs 15 for a bottle of water, but we can't bear to pay Re 1 more of 1 kg of rice or wheat, we are prepared to pay Rs 20 for an ice cream cone, but we can't pay Re 1 more for one kilo of wheat or rice" few day back had made lot of noise.
As a person regarded as a market-friendly reformer, he may be a welcome by the business community. Also keeping in mind the 2014 elections, there may be few announcements to please economically weaker sections. The question remains "who cares common man?"
We need your opinion. Post your comments below
Dont forget to share this post