What the budget speech should say - The Honest Truth By Ajit Dayal
Investing in India - Honest Truth by Ajit Dayal
What the budget speech should say A  A  A
16 FEBRUARY 2013

The media is already calling frantically. They want to block dates/times and have us give our views exclusively on their channels. Budget Day, the big media event day, is scheduled for February 28. "We need a special quote from you, sir, please don't disappoint us'.

But, honestly, what is there to say?

The "disappointment" will not come from me.

It will come from the person giving the speech! ☺

Like it did last year, when the then Finance Minister challenged the safety of the laws of India under which all of us - locals and foreigners - invest and announced a retrospective tax. The GAAR laws have since been repealed, diluted, or deferred - but the damage to India was tremendous. India finally achieved its ambition (wrong, in my view) to be like China. We scored a self-goal and looked like any other tin-pot country that can change fundamental laws at a whim. And then we made the self-goal scorer the coach! From self-goal Finance Minister to President!

Oh, well - that was last year. But what about this year? What can we expect?

Well, I can tell you the budget speech I would like to hear...

------------ The Secret behind the Outstanding Performance of our Small Cap Service last year! ------------

Our Small Caps Recommendation Service has seen some tough times in the past...

However, there were 3 Investments that we made in our research process which have completely turned the service around and it's already paying rich dividends now.

We've just released a detailed 5 Years track record of the service...

Right from the very first stock we picked to the last position we closed.

So, if you're investing in Small caps... Read this before you buy the next stock!

Click here for full details...


We, the People

Dear Honoured Speaker and Members of the House:

I stand before you today to confess that, for the past few decades, we have lost our way and wasted many opportunities.

Our forefathers fought for freedom and we ended up enslaving our own people again.

In ancient times the priests and the kings brought fear and uncertainty into the daily lives of their suppressed subjects. Democracy has given rise to a new feudal system: a system where the government and the machinery of the government favours our friends, our family, and our very market-capitalisation focused Indian industrialists - whose only claim to the label of "industry" has been the effort of figuring out who to bribe for favours.

We have seen the end result of a statement made by the revered Mrs Indira Gandhi. "Corruption", she intoned, "is an international phenomenon". And so it is. And India has gone international in a big way. In addition to all the murky deals behind the purchase of commercial aircraft and defence equipment we have our home-bred corruption of coal mines, CWG, fodder, iron ore mines, natural gas and oil, real estate cocooned SEZs and spectrum.

It was this astounding success of the Indian intellect and the ability to maximise loot for a few that led Rajiv Gandhi to famously state that money meant for the poor did not reach the poor. Much as he loved his mother, the sacred and revered Indira Gandhi, the son knew that the system was rotten. In fact he claims that his mother told him this.

On December 28, 1985 I was there when the late Rajiv Gandhi, as the President of the Congress Party and a leader of a new India, gave a soul-stirring speech at the Brabourne Stadium on the occasion of the 100th year celebration of the Congress Party. It is a speech that every Indian must read and follow. I have circulated a copy of his speech to all members of the government and the bureaucracy with an instruction to sign this and return it to me as a pledge of their commitment. Yes, a budgetary provision of Rs 2.14 crore has been made to send this to the Top 100 industrialists, the 7,000 members of various legislative bodies, and the 1 lakh members of the bureaucracy at a cost of Rs 54 per mailer.

For those of you who have little time for such irrelevant matters as the text of a soul-stirring speech and are en route to meet one of my colleagues to bribe your way to the next deal, I will read out two extracts from Rajiv Gandhi's sermon.

The first deals with the how the politicians, including those in Congress, have failed us and Rajiv Gandhi's education on India:

I was exhilarated by what had been achieved in the short period since Independence. I was also saddened by what might have been but was not, because of weaknesses in government and in the party. I kept my counsel to my-self, as I was an apprentice in the great school of politics.

After two years of incessant travelling, meeting people, reading and reflection, I felt I could go to her with my perceptions. Listening to me, she thought I had gained some understanding of the complexities of our society. And then she began to unburden herself. She spoke of India's enduring strength and of her hopes for India, but also of her apprehensions and anxieties. She analysed with clinical precision how the entire system had been weakened from within, how the party had once again been infiltrated by vested interests who would not allow us to move, how patronage and graft had affected the national institutional framework, how nationalism and patriotism had ebbed, how the pettiness and selfishness of persons in political positions had ruptured social fabric. She was clear that if India had to keep her 'tryst with destiny,' so much had to change. And then, suddenly, she left us. Indiraji's thoughts and reflections on the state of the nation are an abiding influence.

The second extract deals with the businessmen who enjoy being photographed with their hands folded in their towering homes and villas.

Our economy owes much to the enterprise of our industrialists. But there are some reputed business and industrial establishments which shelter battalions of law -breakers and tax evaders. We have industrialists untouched by the thrusting spirit of the great risk-takers and innovators. The trader's instinct for quick profits prevails. They flourish on sick industries. Many have not cared learn the fundamental lesson that industrialisation springs from the development of indigenous technology, not from dependence on others. Industrial empire built on the shaky foundations of excessive protection, social irresponsibility, import orientation and corruption may not last long.

The trade have a glorious heritage of nationalism and of socially relevant radicalism. Today, they are a mere shadow of their past. They now protect the few who have, oblivious of millions who have not. They feel little concern of the creation of national wealth, only for a larger and larger share in it. Nothing is considered illegitimate if one marches under the right flag. Power without responsibility, rights without duties have come to be their prerogative. Will productivity arise from such stony soil? Let us not forget that the poor and the unemployed have to sacrifice their development programmes to subsidise inefficient industry.

Honourable Speaker, I believe it is time to regain the dream.

To capture the essence of what was expected since the birth of India - the greatest social experiment, now going terribly wrong

I had indicated a provision of Rs 2.14 crore for the printing and circulating of the speech given by the late Rajiv Gandhi.

Do not worry I hope to get all this money - and more - back into the coffers of the government.

By the end of today, the Top 100 industrialists, the 7,000 legislators, and the 1 lakh bureaucrats (to whom a copy of the Rajiv Gandhi Centenary Speech has been sent at a cost of Rs 2.14 crore) will have received a letter from me inviting them to send us the details of their illicit wealth.

They can keep 1% of what they declare - the rest will come to the kitty of Government of India. And they will spend 12 months in hard labour in jail before they are allowed to return to a new, free life.

If they fail to disclose the correct amount of their ill-gotten wealth, we will take no hesitation in confiscating whatever we discover - including their legitimate wealth. And, as a further punishment, they will be sent to work in the coal mines, the iron ore fields, and the roofs of ramshackle structures to erect the towers on which they beamed the spectrum they once owned. This will be a life sentence.

And we will not spare the members of the government - we, after all, are subject to the same laws which we have been empowered to administer.

Members of the Honourable House, the plight of the women in this country has driven us to initiate a law to fast-track the cases of abuse against our cherished women.

And, in the same spirit, we will create a fast track court for these cases against the privileged and the well-connected who have abused Mother India.

Please do not get me wrong. This is not a witch hunt. This is an enforcement of law.

Catch the big fish, the small will fall in line.

We wish to be fair, to be democratic - to give equal opportunity to all.

We cannot guarantee an outcome for every citizen - that is the responsibility of the individual to rise to the occasion. But we can ensure that every individual who wishes to progress by fair means is given the opportunity to do so. That is the true meaning of a democracy.

I now place before the House, the budget for the financial year beginning April 1, 2013.

There will be no change in any revenue programme of the previous budget.

There will be no change in any expenditure programme of the previous budget.

Barring these additions:

  1. A sum of Rs. 2.14 crore for the printing and delivery of the inspiring speech of Rajiv Gandhi that I had referred to earlier;

  2. A sum of Rs. 500 crore for the creation and operation of the 50 fast track courts we will implement on a war footing to be put in place and fully staffed, with at least one in every state;

  3. A sum of Rs. 10,000 crore to be paid to a select staff of 10,000 lawyers and investigators who will investigate senior members of every government, political party, and bureaucracy and the Top 100 business families. These teams will have 365 days to bring their cases to the fast court for a quick conclusion. There will be a daily update on the website: CongressAgainstCorruptActs or CACA.in
It is my humble expectation, Honorary Speaker, that when you clean up the big fish the small fish come to get cleaned on their own. I must apologise but I was unable to find a suitable quote in Tamil. But I did find this one in English: If you kill the Lion, your roar will being in the Rabbits. To ensure that Tamil literature remains rich and can continue to be a source of inspiration for future Finance Ministers, Pandit Subramaniam, has enshrined this in Tamil: Singhatai konal, adodu karzanai muyalai kondu varum.

Honourable colleague, war is of many kinds. There is the traditional form of physical war which we are equipped to fight. There is the state-aided terrorism which we are battling on a continuous basis. And there is the subtle war waged by civilians in fine clothing: the war of undermining an economy. It is this financial subversion that we are now tackling. While we have outlined the steps to fight the domestic enemy who aid and create corruption, we need to take steps to fight their handlers and supporters.

To show our seriousness of purpose, we are confiscating the assets of the governments and companies of Cayman Islands, Channel Islands, Cypress, Luxembourg, Mauritius, Panama, Singapore, and Switzerland which are within India. We want these countries to release every bank account where the beneficiary is, or suspected to be, an Indian resident. The onus is on them to give us the list. The responsibility is ours to check what is legitimate. More countries will be added to this list over time.

Every foreign bank operating in India will have its license suspended with immediate effect and these banks will only be allowed to operate again when they have released the list of every bank account suspected to belong to an Indian resident.

Every multinational company will need to submit to us a list of people or entities they have paid consulting fees or bribes to in order to win contracts in India. Failure to submit the list will result in confiscation of their Indian assets and they will be debarred from any further business in India.

For the credit rating agencies who are so worried about our fiscal deficit, I have only this to say: you may need to upgrade India to AAA+++ status. With all the money that we will collect from confiscated wealth, we will have a budget surplus for decades.

And for those economists worried about out capital account deficit, I have only this to say: with the return of the money in offshore bank accounts, India's foreign exchange reserves will grow by an estimated 300%. India will be able to handle any crisis. And, yes, we will remove the import tariff on gold for those fools who still wish to buy gold.

Honorary Speaker and citizens of the country, the time has come to make India a place worthy of us.

A place where corruption may not be eradicated - but it is rare and unusual.

A place where we, the government, are servants of the people.

It is with this spirit that I read out another extract from the speech of Rajiv Gandhi, "The war on corruption will go on without let or hindrance. The country needs a clean social and political environment the Congress is determined to give it."

I had announced the Rajiv Gandhi Equity Saving Scheme to kick start the habit of retail investing for a new generation of investors.

Honourable Speaker, I now submit before you, humbly, a budget inspired by the Rajiv Gandhi Centenary Speech to announce the birth of the India which our freedom fighters fought for.

Jai Hind.

Yes, that is the budget speech, I wish to hear. Call me for a comment when such a speech is delivered - and such a budget is adopted.

Anything else will be a disappointment. And feel free to quote me on that!

Have India's Mutual Funds Failed You?

In an Industry which has a history of supporting distributors prior to the interests of investors...

...which is the fund house you trust the most with your money.

Cast Your Vote Today And Help Make A Change! Vote Now...

Suggested allocation in Quantum Mutual Funds (after keeping safe money aside)
Quantum Long Term Equity Fund Quantum Gold Fund
Quantum Liquid Fund
Why you
should own
An investment for the future and an opportunity to profit from the long term economic growth in India A hedge against a global financial crisis and an "insurance" for your portfolio Cash in hand for any emergency uses but should get better returns than a savings account in a bank
Suggested allocation 80% 20% Keep aside money to meet your expenses for 6 months to 2 years

Disclaimer: Past performance may or may not be sustained in the future. Mutual Fund investments are subject to market risks, fluctuation in NAV's and uncertainty of dividend distributions. Please read offer documents of the relevant schemes carefully before making any investments. Click here for the detailed risk factors and statutory information"

Disclaimer: The Honest Truth is authored by Ajit Dayal. Ajit is a Director at Quantum Advisors Pvt. Ltd and Quantum Asset Management Company Pvt. Ltd. The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and has not been authenticated by any statutory authority. The author, Equitymaster, Quantum AMC and Quantum Advisors do not claim it to be accurate nor accept any responsibility for the same. Please read the detailed Terms of Use of the web site. To write to Ajit, please click here.

Read our Privacy Policy and Terms Of Use.
Get The Honest Truth directly
in your mail box.
Just enter your e-mail address» 

Read our Privacy Policy and Terms Of Use.

Equitymaster requests your view! Post a comment on "What the budget speech should say". Click here!

14 Responses to "What the budget speech should say"


Mar 6, 2013

what a boring piece of article....i stopped in half way...pls dont bore us with ur ideology...spare us.

Like (1)


Feb 19, 2013

How I wish this come true.. our politicians being so truthful and following what their leaders said in the past is not so unachievable ask per say.. :)

Like (1)


Feb 19, 2013

Couldn't help putting below the song from the 50s movie, Phir Subah Hogi. Singers-Mukesh, Asha Bhonsle, Lyrics-Sahir Ludhianvi, MD-Khayyam :

Maana ke abhi tere mere armaanon ki keemat kuch bhi nahin
Mitti ka bhi hai kuch mol magar insaano ki keemat kuch bhi nahin
Insaanon ki izzat jab jhoote sikko me na toli jaayegi
wo subah kabhi to aayegi
wo subah kabhi to aayegi

Like (1)


Feb 18, 2013

Hi Ajit
Do not post letters likes this. Kapil sibal will arrest you.
Manish Tiwari will take you to court for defaming mother India. Chidambaram will chide you in oxford English. Dung vijay singh will give a TV interview saying that you belong to RSS gang. All TV channels will ban you. Why are you inviting trouble.
Do not worry narayanasamy will set everything right in 15 days.

Like (1)


Feb 18, 2013

We the people, under the able leadership of Mr Ajit Dayal and not Ajit Kumar - Emerging Star of Tamil Cinema, Has commented in this article with a super tamil dialogue similar to Bryan's `Cross of Gold' speech, have for one last time given an opportunity to Mr P.Chidambaram - FM, to simply announce this budget wish list of ours in the parliament to stand a chance of attaining the ultimate truth in life i.e.., MOKSHA.

Moral of the story (article by Ajit) and a slogan as a request of agitation to the FM and the members of parliament would be "Pass the people's budget wish list to attain MOKSHA lest NASHA (thro' Vinashakale vibaritha buddhi)". This is the special quote Mr Ajit can give to the media channels on the eve of prior to the budget day.

Like (1)

Harit Shah

Feb 18, 2013

A very interesting read, indeed! But a pipe-dream, I am afraid! Sadly, the truth is our politicians are scoundrels of the first order and will never ever subject themselves to the laws they frame for 'lesser mortals' like us! I do not foresee these scoundrels brnging back any unaccounted money EVER! The reason is very obvious - they themselves will be adversely impacted if this happens as they themselves hold so much unaccounted money in Swiss banks and other tax havens. So obviously, as they say in Hindi, they will never do such a thing as "apne pairon pe kulhaadi maarna!" Sad, but true. Let us give a chance to Aam Aadmi Party in 2014 general elections, I mean, they can't possibly do any worse than these scoundrels!!

Like (1)

Mario Braganza

Feb 17, 2013

An inspiring and heart-touching speech, Ajit. Thank you for speaking our minds. I am grateful we have people like you still with us. Gives this great nation hope!

From dreams, and a dream speech, arises edifices which can prove Churchill wrong!

Like (1)

devender singh narang

Feb 17, 2013

Is this all possible in India?if it is implemented India will be again SONE KI CHIRYA.

Like (1)

Avinash Nema

Feb 17, 2013

Fantastic! Written from Heart, so many messages and action plans are contained and even if one is taken earnestly and implemented a blody revolution can be avoided in future !!

Like (1)


Feb 17, 2013

Shri Ajit Dayaji

I wonder why such a Budget speech cannot be delivered
by the serving Finance Minister, regardless of whoever
is in that post at a given point of time (on Budget Day, of

What stops us from doing so? Us, as in a collective sense,
as a nation, as a people.

If a referendum (vote) was held on this point, 90% people
wud happily vote in favor.

A truly inspiring and thought provoking speech, indeed!

Like (1)
Equitymaster requests your view! Post a comment on "What the budget speech should say". Click here!