Budget 2004-05: sharper instruments and objectives

Abstract

This is after all a coalition budget and so unless the finance minister is strong and has strategic dominance over the coalition, large debt and deficits are inevitable. However even within those constraints, there is little indication where the resources will come from for the various promises that have been made. The budget mentions thrust areas in agricultural development that require moving the agricultural economy in a commercial direction. But there is no vision about this in the budget. As for transaction tax, there are many reasons why it is problematic and also bad conceptual public finance.