You layout huge spending plan for Aam Aadmi without clear direction on sources of funding. You raised MAT which will affect infrastructure companies by drastically affecting their ability to raise funds for projects and or attract banks to lend them.
Your budget left us gasping with more questions than answers.
With the available info, it leads us to believe that you will suck up all the available liquidity from markets for your Aam Aadmi schemes leaving private sector (specifically infra stocks) with less credit to borrow from markets and at the same higher taxes.
I don’t understand how you are going to increase rural employment without private sector participation. I am guessing that you will end up creating huge unemployment in urban areas by weakening private sector.
Filed under: Finance India, India blogs, india wired , budget 2009 july, mukherji, pranab, sensex crash post july 2009 budget
