Ajay bhai here is the English version Is this a `good days are coming` budget? The maiden budget presented by the Narendra Modi led BJP government was awaited with great expectations by different segments of the society. The budget provides a wonderful moment for economists to debate the governments economic priorities. I look at this budget from the lense of a student of politics. The BJP came to power on a massive `aspirational vote`. The election slogan of Narendra Modi that by voting him to power people could hope for the dawn of `acche din` spurred on this expectation. Does this first budget provide any portends of this `coming of good days`? If the coming of good days is about a `promise`, then the budget is full of such promises and reads like a wonderful `wish list`. However, if the `coming of good days` is to be seen in terms of concrete measures, the applause seems a bit muted! The National Election Study 2014 conducted by Lokniti, clearly indicates that the socially privileged, the economically affluent and the middle class, supported the BJP with greater enthusiasm than the poor and the less privileged. The way the share marked fluctuated during the presentation of the budget and ultimately rose by over 400 points is indicative of the initial lukewarm response followed by a mellowed down endorsement of the budget proposals by the business sector. The middle class have been offered several concessions in this budget in terms of rise in the income tax exemption limit and the incentivizing of savings. Raising the FDI limit in the Defence and Insurance sector to 49%, earmarking of funds to create 100 smart cities, provision of bank loans for long term infrastructure and tourism, the boost to tourism, are all steps that would gladden affluent and middle class India. However, given the high expectations of the middle class and the general cynicism among this segment, the expectation of course would have been for much more. What does the budget hold for the economically deprived and the socially underprivileged? In his acceptance speech on being chosen the leader of the BJP Parliamentary Party, Narendra Modi rightly emphasized that the agenda of his new government would be to address the challenges faced by the poor and the downtrodden. In specific terms does this budget have something concrete for these segments? Big ticket announcement that were expected by many were visibly missing. To be fair to the government, the first budget should be seen as a curtain raiser. The Finance Minister while presenting the economic survey also drew attention to the `inheritance` from the previous government. However, when in power one cannot palm off responsibility to what was done by the predecessor. The funds earmarked for affordable housing is commendable as is the focus on productive asset creation through the NREGA and the scheme for electricity supply to rural areas. However, these cannot be termed as `eye-catching` schemes or programmes that would be the USP of a new government. Young people played a major role in ensuring a BJP victory. They have huge expectations in terms of job creation and educational opportunities. The focus on job creation seems merely tangential in this budget. The move for 5 new IITs and IIMs caters more to the elite among the young and does not address the aspirations of the wider segments among the youth who do not aspire for these `big name` institutions but more on means of acquiring skills to make them more qualified for the `world of work`. This pressing need could have been addressed more specifically, rather than in generic terms At the end of the day, any budget proposal is about the implementation. Past experience has shown that budgets have made grandiose provisions and massive claims. At the end of the year, there is very little to report in terms of implementation and delivery on the ground. What mechanisms does the government plan to put in place to ensure that the budgetary provisions it has made for specific schemes – be it on creation of medical facilities or special schemes for the education and growth of the girl child, are actually spent prudently and keeping in mind specific objectives during the year. Budgets are grand schemes… they need to be accompanied by a robust implementation road map. Then alone is the promise of the `coming of good days` likely to be a reality for the millions and millions of Indians who live in that hope for a better tomorrow.
Posted on: Fri, 11 Jul 2014 11:29:48 +0000
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