BUDGET 2006 - Reform Cues Go Missing In Poll Hues

MODEST taxes and modest spending increases marked a Modest budget from a normally immodest finance minister. This don't-rock-the-boat Budget was tailored for the upcoming state elections. Finance Minister P Chidambaram, on Tuesday, steered clear of controversial reforms - some of which had been confidently predicted - that might have raised electorial heat. He didnot utter a word about labour reforms or raising oil prices in line with the Rangarajan committee's suggestions.

The Finance Minister didnot liberalize foreign investment, announce any new disinvestment, tax withdrawals of long-term savings, or impose any new tax. He increased allocations for every conceivable vote bank, but modestly enough to avoid an explosion of pre-election spending that might swell the fiscal deficit. Releived by this prudent populism, sensex shot up by 88 points!

What is cheaper & what is costlier

Cheaper

• Small cars
• Soft drinks
• Shoes
• Ice cream
• PVC
• Alloy Steel
• Aluminium
• Tin Sheets
• Anti-HIV drugs
• Anti-Cancer drugs
• Pasta
• Instant food products
• LPG stoves
• Fluorescent lamps
• DVD drives
• Flash drives

Costlier

• Packaged software
• Umbrella
• Walking Sticks
• Kitchenware
• Tableware
• ATM services
• Honey
• Vanaspati
• Credit/debit card services
• Share transfers
• Internet Telephony
• International Air Travel
• Travel by cruise ships
• Glassware
• Computer
• Soaps
• Cigarettes
• Biscuits
• Goggles
• Henna powder
• Ceramic items
• Bricks and tiles
• Marble slabs
• Roofing tiles