Like all things on the middle path, neither strong enough nor weak, Pranab Da’s battered budget train whole last week, got a sum total of zero in appreciation orcriticism scores with talking points like spends on welfare new taxes without overburdening the customer overshadowed by the CPI number at 8.8% and the retroactive 1962 amendment that allows the government to meaningfully stop drainage of revenues by allowing it to Tax Capital gains on any overseas transaction related to business /.business prfits booked in India affecting both Vodafone and Bharti Airtel for overseas services int he latter case and the $2 bln tax bill the govrernment unsuccessfully fought for in the Supremen Court.
The boomerang on the Vodafone transaction undermines the faith in the judiciary coming so close to the judgment and heightens south Asia’s inability to live with a competent democracy, India having been the only proof the working propositions live within a democracy in the region.
The Judiciary does not have a clean bill of health of course, but seeking their advice on future decisions in one case ( for overriding the FCFS Auctions in telecom) and passing a new retroactive law in the second . In the Vodafone cse too, the government could have easily avoided the retroactive effect but it seems to be a thorn in the flesh of the government that is sunk litigation costs into a bid to regain $2 bln in lost revenue and that judgment has obviously made international headlines. Of course I do not really know my reader profile but I suspected it has been going away from Internet marketing / content watchdogs and Financial Advisors to current and future management professionals in various industries and they would all in their working life have either felt it or arefeeling so that the entire exercise is a waste of time and breath despitre all the optimism on India, much like the Housing recovery in the US