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The Montek Singh Ahluwalia Chat

Lot (Thu Mar 6 22:30:08 1997 IST):

Mr Montek Singh Ahluwalia: Sir what are your impressions of the budget?

Out of New Delhi, I freelance with a few... Are we early or is the man late?

Hello everyone

Mr Ahluwalia, congratulations on a good Budget. However, we in the West are not sure whether your minister has the political mandate to go on with what he has promised. We hear that he will be compelled to make substantial changes in his proposals by members of his ruling alliance. Can this happen? Why/Why not?

Is he there os is he not all there man? Nikhil, I have my FATHER here tonite, along with some other golfers... hehehehe

Hello Mr Ahluwalia, its a pleasure to be able to chat with you.

Hello eveybody, here I am all ready for your questions

Good evening, Mr Ahluwalia. It is good to have you on the Rediff Chat tonight. I do hope you enjoy the experience like you did the last time.

Hello, Mr Ahluwalia, What impression do you have about the budget?

Hullo, Mr Ahluwalia,. This Mike Wallace from Wall Street. A bull on India, if I may say so. Congratulations on your Budget. I was disappointed though that it did not go far enough on liberating insurance from govt control. Do you think that will happen in the conceivable future?

Mr. Tyrne, I thought that the budget demonstrated that there is a very wide concensus in India behind the reforms u need have no fear of any uild of pressure to change the budget proposals the fact is that budget has been extremely well recd.

Mr Ahluwalia, What do you think about the FERA being abolished?

Good morning, or should I say Good evening, Mr Ahluwalia. Despite the euphoria about your Budget, I am sorry that I remain unconvinced. There is much too much uncertainty over India's reforms. In fact, I believe that despite all the hoopla, the reforms have been stuck in limbo these last two years. I am sure you will not agree. But will you tell us why?

Mr. Ahluwalia : My father paid his taxes religiously, faithfully and truthfully for the past 4 decades and more. Now, at this stage, the government turns around andlets all those who didn't get away with a VDS of 30% on a subsequently much devalued rupee. What do you have to say to my father, he sits here next to me. Should he pass on the same values to his Grandchildren or should he say *the sarkar is going to make it easier for law breakers anyway so go ahead and evade taxes*? How do you feel, assuming you paid your taxes loyally all your life? Please give my 80 year old father a straight and serious answer. Thank You...

Good morning, or should I say Good evening, Mr Ahluwalia. Despite the euphoria about your Budget, I am sorry that I remain unconvinced. There is much too much uncertainty over India's reforms. In fact, I believe that despite all the hoopla, the reforms have been stuck in limbo these last two years. I am sure you will not agree. But will you tell us why?

Mr. Ahluwalia: What, in your opinion, is the margin of error in the fiscal deficit figure of 5% for last year? Probability of upward revisions?

Mr Ahluwalia, what breathtaking initiatives can we expect from your government this year? Or are you done with the Budget?

Mr Ahluwalia: What do you think will be the effect of Mr Bill Gates visit to India??

CONSENSUS? CONCENCUS? CONCENSUS? whatever...

Good evening, Montek. I scoured your Budget for incentives for foreign businessmen to build infrastructure which your country needs so badly and was sorely disappointed to see little of it. Why is that so? Since both your minister and you have spoken of a focus on infrastructure, why has this not been addressed in the Budget?

Mr Ahluwalia, Why India has not been able to attact the amount of foreign investment which China has got?

Mr. Manohar The 5% deficit fig. is pretty firm the error may be no more than a decimal point .

?

Finace Secretary Ahluwalia, thank you for this opportunity to discuss your nation's fiscal policies with you. India's government officials are unique in using this wonderful medium to discuss policy issues. As a commentator on South Asia, I despair that no govt initiative to reduce poverty ever addresses the reality of the situation, the corruption, the fact that all your subsidies get waylaid on the way. What uses are all thse wonderful plansd if it is not backed bghy a vigilant monitoring authority? How many of your social schemes in the Budget will ever be truly successful? What is the existing casualty rate?

What about subsidies? I thought you were in the process of trimming subsidies. But I find they exist and are enhanced in this Budget. How did that happen?

Mr Ahluwalia, What do you think about the FERA, which has being abolished? Will it help?

??

Hello Mr Ahluwalia, sir don't you think that increasing the costs of cigarrtte prices will affect a major sector of economy, though it is a wise decision.

Mr Secretary, the issue of poverty is a real one in India. The reforms are futile without the benefits reaching most of your people. Do you see any way that your Budget will substantially tackle the issue of poverty and, in fact, make a difference to all those millions of Indians who do not have homes nor food to eat ?

Lot and Lota, I'm out of New Delhi, how about you? Classic Rock, where? On the other net connection I got here with a linkup to the magazine I (pretend to) work for...

Mr Ahluwalia, one line answers do not do justice to all of us who have gathered from different parts of this world to discuss financial issues with you. May we expect some eloquence from you, Sir?

Mr. Ahluwalia: Thank you for that deficit answer. A followup to Elaine's question on reforms. After the BSE hits 4500-5000 on the strength of this budget, what policy measures do you expect will steer it towards 10,000 and above over the next few years?

HOLD ON FOLKS! MR AHLUWALIA AND THE REDIFF STAFF HAVE MOVED FROM HIS HOME TO THE MAURYA CYBERCAFE TO CONTINUE THIS CHAT. STAY TUNED. HE SHOULD BE BACK SHORTLY.

Hey, what happened? We lost the connection here and got it right back...moving to Maurya will take him about 20 minutes man...

Will you scroll questions or do we start afresh please?

what gives anyway???

Dear Veeresh Mr Ahluwalia will be reaching Mauraya in another 10 minutes time and you do not need to write your questions again. Mr Ahluwalia will be able to scroll and answer the questions on the screen.

What more in your opinion needs to be done by your ministry to improve the outlook for infrastructure in India? Do you think an arbitration process that is beyond controversy could be one of the factors that attracts foreign investors?

Did the Enron controversy put back the reform process by five years? Did that experience frighten foreign investors from coming to India? How do you create an environment of financial viability and a strong risk mitigation mechanism?

Mr Ahluwalia, What do you think about the FERA, which has being abolished? Will it help?

Sorry, my question got scrolled off the screen. Hence, my first question again: ood morning, or should I say Good evening, Mr Ahluwalia. Despite the euphoria about your Budget, I am sorry that I remain unconvinced. There is much too much uncertainty over India's reforms. In fact, I believe that despite all the hoopla, the reforms have been stuck in limbo these last two years. I am sure you will not agree. But will you tell us why?

Finace Secretary Ahluwalia, thank you for this opportunity to discuss your nation's fiscal policies with you. India's government officials are unique in using this wonderful medium to discuss policy issues. As a commentator on South Asia, I despair that no govt initiative to reduce poverty ever addresses the reality of the situation, the corruption, the fact that all your subsidies get waylaid on the way. What uses are all thse wonderful plansd if it is not backed bghy a vigilant monitoring authority? How many of your social schemes in the Budget will ever be truly successful? What is the existing casualty rate?

Mr Secretary, the issue of poverty is a real one in India. The reforms are futile without the benefits reaching most of your people. Do you see any way that your Budget will substantially tackle the issue of poverty and, in fact, make a difference to all those millions of Indians who do not have homes nor food to eat ?

Photographs: Atul Chowdhary