"In one word, it's a tolerable Budget," said the Trinamool's Sudip Bandopadhyay. The DMK was more positive. "We're happy. It's a pro- development Budget," said its TR Baalu.
Finance Minister Pranab Mukherjee proposed trimming the government's subsidy burden. High oil prices have swelled India's subsidy burden to roughly 2.5 per cent of GDP and Ms Mukherjee called for reducing that to less than 2 per cent in the fiscal year that starts on April. Ms Banerjee has told the government repeatedly that she will not tolerate any rise in petrol or diesel prices since that will affect the common man or aam admi. "These are compulsions of managing a coalition," said the Prime Minister when asked about whether he expected Opposition from Ms Banerjee about reducing subsidies. "There will be differences, he said, but "if the government has to govern, it must have sustainable strategy for managing the economy." Adding that all allies would be consulted, he asserted, "When the time comes, we have to bite the bullet on controlling subsidies. "
Congress leader Rahul Gandhi offered only this short assessment: "It's a good Budget."
Gurudas Dasgupta of the Left said, "The Budget is completely ineffective. The tax system is regressive."
"Dada's Budget presented amidst revolt from Didi will herald the farewell of the UPA government," said the BJP's vice president Mukhtar Abbas Naqvi, adding that "instead of leading the nation on the path of reform, it will lead it to indebtedness."
Ms Banerjee and the Congress are believed to be on the shakiest ground their partnership has seen so far after she ordered that Railways Minister Dinesh Trivedi be removed by the end of today. Mr Trivedi, who presented the Rail Budget earlier this week, belongs to Ms Banerjee's party. But his decision to hike passenger fares has, in Ms Banerjee's view, made him Public Enemy No 1. The Congress says that Ms Banerjee has the right to reallocate the Railways Portfolio to another member of her party. But it wanted her to wait till March 30 when Parliament takes a break. That would save the government from a blistering attack by the Opposition, which will target its inability to refuse Ms Banerjee any demand, because of its reliance on her MPs for its survival.
Ms Banerjee's party last night told the Congress that it will not wait beyond tonight for Mr Trivedi's exit to be announced. Sources also say that the Trinamool wants Mr Trivedi to be sacked, and has rejected a suggestion from the Congress to allow the minister to resign - a move that would lend some dignity to his exit.
In the Union Budget today, Finance Minister Pranab Mukherjee proposed trimming the government's subsidy burden and called for speeding the pace of economic reforms, which have been stalled by political gridlock. High oil prices have swelled India's subsidy burden to roughly 2.5 per cent of GDP and Mukherjee called for reducing that to less than 2 per cent in the fiscal year that starts on April. Ms Banerjee has told the government repeatedly that she will not tolerate any rise in petrol or diesel prices since that will affect the common man or aam aadmi.
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