The budget presented by Union Finance Minister Sri Pranab Mukherjee has shown rare long range vision for growth with increased inclusiveness in the growth process.The focus on agriculture,rural development,infrastructur development,rural housing expansion and employment creation will spur overall growth and contribute to increase in GDP.The stress on education,skill development and health care will contribute to human development and enhancement of productivity of working population.Larger government expenditure will surely contribute to growth.Alongside growth the Finance Minister has sought to increase inclusiveness in the process of growth and this is laudable.NREGS is sought to be implemented with greater vigour and allocation for this programme has been stepped up to Rs.39100 crores,144 per cent increase.About 44.7 million households are going to be covered under this programme this fiscal as against 33.9 million last year.The scheme is sought to be brought in to convergence with other rural schemes for greater effectiveness.Also bharat nirman programme and rural health mission will get larger allocations.The idea of increasing credit availability in rural India and stress on rural housing expansion are also most welcome.Another big idea in this budget is the proposal to enact Food Security Act to which there is an express commitment on the part of UPA government.Enactment of the proposed Act will guarantee as a matter of right to each family below poverty line 25 KGs of rice or wheat and this will surely become a tool for fight against poverty.While NREGS has a component of work programme built in to it food security scheme will be by way of sheer income transfer scheme.Together these two programmes will be powerful tools for fighting against poverty.
One area in which the budget has fallen short of expectation is in the area of providing an immediate and exclusive stimulus for speedy recovery and growth of the economy in these days of economic down turn.The increased expenditure of Rs 61000 crores over the interim budget itself has to serve as a stimulus and there is no separate stimulus package for this purpose.The short sighted and hyper reaction of the markets to budget was indeed unwarranted.Strengthening of the economy in an enduring manner and enhancing its soundness was perhaps upper most in the mind of the Finance Minister.I agree that there was nothing in the budget to enthuse the market and change the mood of the market,trade .industry and corporate world.The FM was reluctant to reduce corporate tax.Also FM has not reversed the cuts effected in excise duties at the beginning of the economic down turn.This is really welcome..All the same some measure by way of protection in these days of economic slow down was required and the FM has simply over looked this.Another important thing is that the FM has failed to provide a road map for moving in the direction of fulfilling the targets embodied in the FRBM ACT. .Fiscal deficit of 6.8 per cent is really high and intolerable.The increase in deficit poses a real challenge.The FM has taken a risk in this area and he has preferred the path of growth with inclusiveness in lieu of the fiscal prudence.,.The widening fiscal deficit and large rural spendings can stand justified only if each Rupee is well spent.The government must ensure that the allocations are properly utilisedand in such a way that result or outcome equivalent to or commensurate with spendings accrue to the nation.Towards this end the government must ensure good governance.A monitoring system must be put in place to measure and evaluate outcomes.
By
Dr.K.K.Ammannaya
Ganga
V.P.Nagar
4th main
Udupi-576102
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