Dr.Debapriya Bhattacharya |
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This budget is special from the view point that it is a budget of three governments. There is no surprise in this year’s budget. This year budget has no uniqueness in its presentation. People also expected that this budget would be proposed targeting the upcoming election, but I am not sure whether it will assist them to take any advantage in that regard. There is an apprehension that the government will not be able to use the block allocation. This budget does not seem that it will bear some positive approach in monetary management of the country. As regards inflation control, the government proposed to reduce some import tax which may have some impact on those products. But the pre-assumptions that were made in budget presentation clearly state that the inflation will not reduce below 6%, and we apprehend that it may rise. The import tariff cut will not affect much in terms of taming the inflationary pressure. As a whole the election expenses, government lending and the increasing trend of oil price will have impact on inflation. The allocation that is made in electricity sector this year is less that actual allocation of last year. It is important to look into the suppliers’ credit in the sector, particularly from China. But it is now felt that noting will happen in this sector until new government comes into power. |