Budget is always been a stringent collective exercise done by the Finance and HRD Ministry, and by all finance , Revenue , expenditure secretaries , Chief economic advisor, planning commission of India and many others, Before starting the budget exercise they have to look after every number and every percentage given by the respective departments before concluding anything. After that the final review is done by our honorable prime minister. If he has any view about any policy or any thing to add-on than further reconciliation has been done in a regression manner. May be this exercise seen simple in writing but believe me this took several months. After that the full proof budget comes in assembly.
Every budget had its own views, I can broadly categorized them as Economic View, second is political view, and the last is Consumer View (So Called “AAM AADMI” view UPA shibboleth).
Economic View -: Economically the Main factors that have been taken in consideration are, first and foremost is the fiscal consolidation. It has been promised by FM to reduce the Fiscal deficit to 5.6% from currently 6.8% 16 Year Higher. You literally get amazed to know that out of the total revenue colleted last year 19% of that only goes to pay the interest for debt which India had taken. Deficit in Broad Terms is Difference B/w the Spending and the Earning .What I feel basically there are two ways consolidate it. One is to increase earning and other is to reduce spending. The Later one is not feasible because it will lead to instability, high-unemployment and having other cascading effects or on the other side you can increase revenue by sucking the Money from the Market which our FM had done very cleverly like by adjusting corporate taxes, Custom Duty, and other non-tax revenues Etc. The second Factor is Growth Rate and for the Better Growth Rate All the deficit should be low. India is amongst the Fastest growing Economy in this world. And According to the planning commission of India It will going to achieve its double Digit Growth Rate by the end of 2012 and also able to sustain it. If we see the Last year’s statistics The Growth Rate fell to 6.3% from 9%. So that’s why in This Budget Its Become necessary for UPA government to Hike Excise duty and Taken Other Measures to Maintain the Growth Trajectory but UPA government Has done it at The Cost of Inflation believing on The Demand-Led Growth Strategies Because of Which Our FM had Adjusted the Tax Slabs . Simply I can say From Growth V/S Inflation our FM has Chosen Growth in a prominent way. This Budget can have drastic effect in Near Future or it can also come up with the Flying colors if every thing goes with our FM perception Yes It true that Good Omens are there Because IIP (index of industrial production) grew up by 11.7% by last November Report. But still last but not the least we can’t believe on these omens blindly because what I believe still the global economy is rebounding its not yet so stable and some where some how India is still connected with global economy. That’s Why Fingered Crossed.
Political View -: Politically Our FM has not many choices in this budget term because of decelerate growth; rising inflation and Global economic slow down. Definitely this budget is not for accumulate votes like as it was earlier for example loan waiver, sixth pay commission schemes was there in last Term budget which was the win-win situation both for the government and for the people. But in this budget term opposition and its allies have many reasons to put UPA in trouble. Lets Hope for the best for UPA.
Consumer View -: It’s the View of the common Man like me and you, who gets affected in the end. Whether budget or its blast we have to face its consequences. I think in this view I felt little bit disappointment And I felt really sorry for the peoples who are not having even a single meal for day, who are not having shelter, who are not having the basic education. According to the latest reports in India still around 30cr (about 300 million) of the people are below poverty lines, around 32cr (about 320 million) are the people who worked for unorganized sectors (Rickshaw pullers, street hawkers, daily wage labours and many others), around 30cr (about 300 million) are the people who are still unemployed and for the lower middle class families whose spending is increased to much than the earning from pulses to petrol all become so high-priced. Inflation already made a big hole in our pockets and now this budget definitely work as a catalyst in this drastic situation, I don’t know whether our FM is aware of these Facts and Figures or not .Or he used to consider only revenue and expenditure percentage only while making his budget. I will like to remind Our FM that please don’t consider them as votes only. They also are the part of India and in this budget term if the growth is on priority than we have to grow coherently our goal should be to grow every individual of this country rather than attaining the figures only. I think if we achieved this than it will be our real growth.
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