I'd earlier, on this forum, touched upon the 'Arthakranti proposals' that seemed to me to be the foundation of Prime Minister Modi's economic thinking. The first budget of this government has been tabled in the Parliament today and the common reaction is that it's a fine balancing act that the Finance Minister has done under the prevailing circumstances. Perhaps, the actions, fine tuned by the salient points of the Arthakranti proposal would be forthcoming when the high level team looking into the aspects of 'black money' would submit their recommendations!
What are my impressions on the budget, the little that I know of economics and the nuances that go with it, notwithstanding? I'm gonna list them as follows as they come into my mind:-
(a) Reviving economic growth without wasting hard earned fiscal gains of last year.
(b) Putting more money into the hands of the tax payers.
(c) Incentives for the manufacturing sector.
(d) Enhanced infrastructure spending with an emphasis on the road network of the country.
(e) The Ganga action plan.
(f) Setting up of more quality institutions like AIIMS, IIMs and IITs in more parts of the country.
(g) Towards the care for women, senior citizens.
But I'd heard a few of the economists who'd come on the television for panel discussions state that the budget does not touch upon the entire gamut of reforms that are badly needed to kick start the economy and spur a vigorous growth. And what's more daunting is the fact that out of every rupee that flows into the central government tax coffers, 44 paise goes into the payment of interest on past debt! To this, while adding the committed expenses on salaries and pension which are due to be increased in 2016, on account of the VII Pay Commission, the money that would be left for development would be paltry!!
And it's that that worries me as a tax payer! Can we, as a country, continue to deny ourselves 'state of the art systems' and the latest technology products, saying that we're developing - a euphemism for being poor?
Tailpiece.
The success of the implementation of the budget will depend on the way the FM is able to stick to the current year's fiscal deficit target of 4.1% of the GDP by getting RBI to contribute and using unspent money from different government accounts!
What are my impressions on the budget, the little that I know of economics and the nuances that go with it, notwithstanding? I'm gonna list them as follows as they come into my mind:-
(a) Reviving economic growth without wasting hard earned fiscal gains of last year.
(b) Putting more money into the hands of the tax payers.
(c) Incentives for the manufacturing sector.
(d) Enhanced infrastructure spending with an emphasis on the road network of the country.
(e) The Ganga action plan.
(f) Setting up of more quality institutions like AIIMS, IIMs and IITs in more parts of the country.
(g) Towards the care for women, senior citizens.
But I'd heard a few of the economists who'd come on the television for panel discussions state that the budget does not touch upon the entire gamut of reforms that are badly needed to kick start the economy and spur a vigorous growth. And what's more daunting is the fact that out of every rupee that flows into the central government tax coffers, 44 paise goes into the payment of interest on past debt! To this, while adding the committed expenses on salaries and pension which are due to be increased in 2016, on account of the VII Pay Commission, the money that would be left for development would be paltry!!
And it's that that worries me as a tax payer! Can we, as a country, continue to deny ourselves 'state of the art systems' and the latest technology products, saying that we're developing - a euphemism for being poor?
Tailpiece.
The success of the implementation of the budget will depend on the way the FM is able to stick to the current year's fiscal deficit target of 4.1% of the GDP by getting RBI to contribute and using unspent money from different government accounts!
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