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When any finance minister talks about tough budget, it essentially means, that some
people will be hit by a dose of additional taxes and/or withdrawal of subsidies.
Mostly former. Under Mr. Sinha, the finance wing of Government of India has displayed
a certain amount of reckless bravado (remember full liberalisation of ECBs). I do hope
that Mr. Sinha will continue the trend and hit the subsidies. Repeated studies have
shown that the subsidies anyway do not reach the targeted segment of population. Hitting
subsidies means hitting vested interests. Taxes in any case have
proven to be too rate sensitive to be increased too much.
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