‘Counter-productive stimulus’ (July 7) points out that the finance minister failed the litmus test. By praising Indira Gandhi for nationalising banks, the socialist in Mukerjee won, and this is perhaps best exemplified by the very modest revenue that he hopes to collect through disinvestment (Rs 1,200 crore). Raising the exemption limits, abolition of the controversial fringe benefit tax, and higher allocation for the rural sector are welcome features. An attempt to shift to nutrient-based fertiliser subsidies should help spurring the use of sulphur-based fertiliser instead of nitrogen-based fertiliser. But the widening gap between expenditure and revenue are cause of concern and the huge deficit may impact our sovereign ratings, affecting the prospects of foreign investment in India.
M M Gurbaxani, Bangalore
