And the markets thumbs up to the budget would stand vindicated. How and in what forms this would be implemented is not clear, but the articulation itself is a step forward. No increase in non-plan expenditure. There was a clear articulation that India is headed for a debt trap if fiscal prudence is not practiced. This would now be applicable only to industrial undertakings employing more than 1000 people.
Companies can outsource their requirements or employ contract labor without any restrictions.
Earlier contract labor could not be employed for jobs that are perennial in nature. Leave travel concession for Central government employees suspended for two years. Recommendations of the Expenditure Reforms Commission accepted wt to downsizing of six ministries. Encouraging states to reform SEBs by linking allocation of external aid and investment by Central PSUs to progress in reforms and restructuring. Removal of certain items from SSI reservation.