With the hike in prices of rice, wheat, sugar, urea and LPG before the budget, the hike in the price of diesel and Railway freight have hit the common people badly when the prices are already high and industry is in the grip of the worst recession seen by the country so far.

Before the budget, in the Economic Survey of 1998-99 the Government indulged in vulgar manipulation of statistics when base year for official statistics was changed from 1980-81 to 1993-94 just to show a higher GDP and GNP. Similar manipulation was made in the budget also by computing the fiscal deficit by excluding small saving collections so as to reduce the actual figure of 6.4 percent to 5.8 percent of GDP. A great job indeed to satisfy the masters in World Bank and IMF even if such exercise does not lead to any creation of job in the country.

All efforts have been made to satisfy both big industries and multinationals. However some captains of Indian industry had advised the Government to substantially increase public investment to boost the dismal industrial scenario. But the external pressure was obviously more powerful. Hence there is actually a fall in Central budgetary allocations in critical areas like engineering, oil and petroleum, steel, coal, fertiliser, and other sectors. The total plan outlay in public sector enterprises has been actually reduced by Rs. 30 billion from 1998-99. For public sector enterprises employing more than two million workers, the prescription is very clear - disinvestment/privatisation of profit making enterprises at throwaway prices and closure of the so called sick units. Rs.5 billion as been earmarked for Voluntary Retirement Scheme but not even one third of the same amount has been kept for revival of these industries. The Central plan allocations for agriculture, irrigation and flood control are lower than budget estimate for 1998-99. This is inspite of the mouthful promises about farmers during the budget speech.