Wednesday, March 2, 2011

The Budget & Aam Aadmi

The Budget proposals announced by Pranab Mukherjee our veteran Finance Minister are disappointing to the common man. Although our Prime Minister has patted the back of Fiance Minister for his proposals he has kicked at the back of the common man. The greatest concern of the common man at present is the dragon of inflation and black money and both these seem to have been ignored deliberately.The reason advanced is that inflation is inevitable for growth and the common man squeezed by surging essential commodity prices, low income and unemployment rightly questions "whose growth"? The rulers have perhaps, revised the definition of common man and have lost contacts with realities of life. It is possible to have growth with low rate of inflation by following appropriate fiscal measures and matching the conceptual and implementation of programmes.

2. It is a pro-corporate Budget with emphasis on industrial growth. Although it is being claimed that rural sector is being given financial assistance by way of low rate of interest on loans to boost agriculture production, it is a shallow claim. It is an established fact that agriculture in India is a gamble in rains and the Government has little role to play. It should have made sufficient allocations for storage of food grains that are lost every year to pests and rodents as well as exposure to natural elements.

3. The Budget has also deliberately ignored the Black money and corruption plaguing the country. The estimated 500 lakh Crores of money stashed in foreign banks, if brought back skillfully can turn our budget from deficit to surplus and escalate our GDP. But considering the impending elections in four states where use of black money is an essential ingredient it was not the appropriate time. A scheme of voluntary disclosure has has also been set aside.

4. The lollypop of raise in Income Tax for salaried employees and senior citizen is illusory as it will be neautralised by inflation and increased expenditure in diagnostic and hospitalisation charges which have been subjected to hike in taxation. The estimates of expenditures proposed are also unreliable as every Government has far exceeded the same. To sum up,the budget does not take care of the majority of citizens who have voted it to power to take care of their essential requirements of food,fuel and consumable items.
The sponsored Analysists appearing in the visual Media and in Print Media paying tributes to the Budget proposals do not impress any one except their sponsors.

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