Jalan gives full marks to Budget

BS Banking Bureau

The fiscal Budget 2002 is well-crafted and growth-oriented, said the Reserve Bank of India Governor Bimal Jalan.

The Governor, responding to the media queries said: "It (the Budget) is reformist and forward looking. It builds on far reaching tax reform measure introduced by India in respect of direct and indirect taxes, which are on par with international best practices."

Jalal also said that the measures taken by the finance minister will help in the improvement of the financial markets.

He said: "The Budget has also given strong thrust to the development of financial markets."

He also feels that the Budget will push the economy's growth. "The measures for enhancing investments, particularly in infrastructure and agriculture will definitely boost investment and growth," he said.

Jalan added: "My personal reaction is very positive. I am sure this feeling will be shared by all economy watches rather than later."

India is grappling with an economic slowdown with gross domestic product growth slumping to four per cent in 2000-01, the lowest in a decade. It is expected to touch 5.4 per cent this year.

Jalan said the Budget also gives a strong thrust to the development of the financial market.

Presenting the Budget on Thursday, Finance Minister Yashwant Sinha lowered the rates on state-run savings schemes by 50 basis points and also linked it to government bond yields.

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