The Union Finance Minister, Mr Pranab Mukherjee, presented the Budget for financial year, 2010-11, on 26th Feb. The economists endorsed it and so did the market. The newspapers and cyberspace were full of extracted portions which outlined the plans in various sectors. I too went through the full text of his speech, and it is indeed replete with many ambitious schemes and proposals.
As I had highlighted for last year’s budget, this budget too seems meant for people and rural areas, and that is why it scores for me again. Some of the salient points which stood out for me:-
• Investment in infrastructure constitutes 45% of the spending, and out of which, 25% is devoted to rural development. Infrastructure investment not only building brings development, but also gives employment to a score of people.
• UPA’s flagship programmes again got a sizable chunk, 37% to be exact. There are many programmes, viz NREGA, Bharat Nirma, Antodaya etc run by the government, and it is imperative that they get a constant and healthy allocation.
• There was raise in Excise duty from 8% to 10%, done in order to control the fiscal deficit. Though it will increase the price, but it is much needed to arrest the growing deficit.
• Fiscal deficit to be pegged at 5.5%, a big improvement, even by the recommendations of 13th Finance Commission.
• PSU disinvestments to raise the capital. As FM himself pointed out, disinvestment till now had not only brought the money, but also raised the companies’ performance and credibility.
• Plan to implement Goods and Services Tax (GST) and Direct Tax Code (DTC) by April 1, 2011. But I hope FM meets his commitment this time, after promising and failing to implement them this year itself.
There are many more such proposals, some actually florid in their design and promise. The budget nevertheless lacks in some features too:-
• Less attention to Education and Health. There are allocations but I always believe they should be tackled on a war footing, as we lag in these sectors by a big gap
• Reduced grant to Sports. Indifference to Cinema, Arts again.
• Lack of proposals to control price rise. Agriculture incentives are fine, but there should also be good laws against their misuse. Hoarding continues unabated; subsidies distribution thorough PDS is corrupted. It is time we increase the lawful measures to arrest the malpractice.
All in all, a good budget for the country. I know the price rise is an eyesore, but also a compulsion. Hopefully we can weather that.
