ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Union Budget Neglect of Employment in Organised Sector

products are bound to affectthe general price level adversely, especially with an actual revenue deficit of Rs 33,331 crore in 1995- 96 (RE) and an expected revenue deficit of Rs 31,475 crore and a fiscal deficit of Rs 62,266 crore in 1996-97(BE).The finance minister and his expert advisers themselves estimate the likely inflationary effect of all this at 6-7 per cent in the coming eight months which most likely is a conservative estimate. In other words, despite his anxiety to present a budget tilted towards benefiting the poor, Chidambaram has been unable to avoid taxing them indirectly to that extent. It will of course be argued that a good part of public expenditure will directly benefit the poor. So it may, as far as intentions are concerned. But from past experience, doubts remain whether the basket of poverty alleviation measures will in reality protect the weaker sections sufficiently against the ravages of inflation.

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