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

second generation reformsSubscribe to second generation reforms

The Budget and Customs Duties

Given that in the last five years there has been little reduction in the general level of tariff rates and that a very low level of tariff is being set as the goal for the near future, a good beginning could have been made in the budget for 2001-2002 by reducing both the peak rates of duty and the average rate. But, despite all the talk of 'second generation reforms', the finance minister has failed to seize the opportunity to take a bold step forward.

The Budget in the Context of Long-Term Development

The finance minister wanted to provide a growth-promoting budget. But budgets cannot promote growth or even arrest the process of slowing down if the fundamentals are not addressed squarely and carefully. These fundamentals belong to the sphere of political economy and are not just economic or financial. They are the long-term factors which determine the outcomes of policies. The budget of a particular year must be seen against these longterm factors to assess its impact or its likelihood of success.
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