In this article i'm not in the track of either criticizing the budget as most of the people do and not going to praise the budget as most of the people say with the phrases "in general the budget is good".Then what for I've started a post like this.
It may be like I have nothing to do and hence started writing about a hot topic generally people want to discuss.So I started analyzing the budget with the minimal knowledge sticking at the peripherals of my brain.I found nothing new or nothing old.Nothing is good and nothing has been said bad.Is it possible in a country, which is being looked into by the world,the Finance Minister propose the budget with nothing inside.At this time I want to use some of my Grey matter to look into the content of the budget.
As rightly described by Tim Ford about Economists, in his book "The undercover Economist" as people who knows the value of nothing.The basic idea is that what is nothing today or non existence today would be a big issue tomorrow.So with this point I started analyzing the Finance Minister than analyzing the budget.Before thinking of putting comments on the budget let us think of the issues
in front of our FM before the budget and needs to be addressed.
Since I'm not an economist or Finance person let me explain in the words of a layman speaking financial terms.All of us know this is the budget after a recession that world faced and a slow down India faced.Not more than small reliefs can be expected from the budget as it has been paid in the previous budget itself.With the very few reliefs nearly 50 percent of the GDP (around 6 percent of the expected 12.5 percent GDP) is spent on the agricultural sector.A welcome issue even then the problem is, the funds are being repeatedly spent on the food for work etc..for enhancing the congress parties image or so.If these schemes are being spent repeatedly irrespective of the monsoon i.e., the investments in these schemes make people to demand for a similar wage in the agricultural field works too.Though it is a appreciable and a eye opener among rural people but the government has not fully looked into other issues like subsidies for fertilizers,seeds,agro machines etc...So this causes an increase in investment in the agricultural land per hectare and so small landlords are not in a position to pay the demanded salary to the laborer.Most of the small farmers sell their land to real estates and went for the Sonia flagged National Rural Yoganas for salaries.Being sent them to work Pranabji is saying lack of supply is the reason for the Food inflation which increased
to 16.58 percent can we blame the FM.Why not.But what is that agricultural minister doing.We have got such a power full Agri minister that he said the
cause for importing wheat in 2007 as "South Indians started eating parathas".He will speak lot on cricket than on agri. Why don't we change his designation.Yes but it is a coalition government running the country and "nothing" can be done.
As you look into the budget it will be clear reg the reduction in expenditures all through the budget.The recession is well over and why this
expenditure cut is being stressed and get criticism from all the Economists. Whenever you look into the history of India whether it is 1990 or 2003, a strong
fallback in the economy or the market will follow the year of high Fiscal deficit. The last year the fiscal deficit is about 10% and a fallback is very well be expected in the coming years.In the forthcoming budgets we need to give some bailouts though not to recover but to make it travel in its path.Also the world is closely expecting a currency crisis after the fallback of the Greece in EURO zone.
It may seem the reason is "nothing" for cut in expenditures but what is "nothing" may catchup a momentum in the near future.
The another interesting thing in the budget is the hike in Income tax slab for the working class.Though it seems to be a good news for the working class earning upto 5L/annum, the contradiction comes when applied to a common
middle class man.Is this announcement also a part of AAM ADMI budget? Mr.FM please clarify.The role of a king is not only to save the common man but also the man/organisation extending hands for him.yes of course it would be the banks doing the job.Because of recession no one was there to get credits out of the bank and people who already got the loans also reduce their numbers to repay.As a result the bad debts and NPA will increase.Though the agri loan waiver gave some boost
to the banks, the lending to the working class and SME's should rise.A man will take loan from the bank whenever he has got some amount in hand and needs some more.When he has got some amount with him without paying to his incometax, he may at least think of getting a loan from bank.But still the move of IT slab raises questions like AAM AADMI.
So criticizing a budget is rather easy task than delivering that.All the decisions in the Budget will get criticisms in one way or the other but the county's strategic growth should be taken care off which is a difficult task
I have analyzed some small moves within my knowledge limits.People want to add points are always welcome.
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