Union budget hides more than it reveals: Gurumurthy
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New Delhi: Leading economist, S Gurumurthy on Tuesday slammed Chidambaram's budget and said, "The budget accorded by the Finance minister in 2008 hides more than it reveals. India's Fiscal deficit is much higher than actually have been announced by Chidambaram."
Speaking on the Union Budget 2008-2009: Reveals or Conceals, Gurumurthy said that there has been a dramatic change in the past few decades in the way the budget has been presented. "Earlier, it has had a theatrical effect and the Budget has now become more pamphleteering rather than a serious exercise on the financial health".
Gurumurthy also slammed the debt waiver of the United Progressive Alliance (UPA) government. He said that debt waiver in no way help to the needy farmers in India. "Farmers mostly take loans from local money lenders rather than banks. It is these moneylenders, who take loans from the banks and lend it to farmers at higher interest rates. So, we can know easily that debt waiver will help the needy farmers or the money lenders," said Gurumurthy.
Gurumurthy also comment on the introduction of 'Derivative trading' announced by Finance Minister, which has been criticized by the major economists world over. He called the 'Derivative trading' as the 'financial disaster' for the country and the move to allow derivatives is like firing a missile into the financial market.
Speaking on the Union Budget 2008-2009: Reveals or Conceals, Gurumurthy said that there has been a dramatic change in the past few decades in the way the budget has been presented. "Earlier, it has had a theatrical effect and the Budget has now become more pamphleteering rather than a serious exercise on the financial health".
Gurumurthy also slammed the debt waiver of the United Progressive Alliance (UPA) government. He said that debt waiver in no way help to the needy farmers in India. "Farmers mostly take loans from local money lenders rather than banks. It is these moneylenders, who take loans from the banks and lend it to farmers at higher interest rates. So, we can know easily that debt waiver will help the needy farmers or the money lenders," said Gurumurthy.
Gurumurthy also comment on the introduction of 'Derivative trading' announced by Finance Minister, which has been criticized by the major economists world over. He called the 'Derivative trading' as the 'financial disaster' for the country and the move to allow derivatives is like firing a missile into the financial market.
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