Saturday, February 21, 2015

Budget always makes people to sibilate ;Either you gloom or gleam

The ensuring budget will make you to negate the established truth of either becoming gloomy or gleeful. Why? Because the last budget, which incidentally was the first one of Modi and his NDA government, they could not establish the magical reforms formula required to upheave the country’s disheveled economic performance. So this budget, which is to be tabled in the parliament in the next week  have to announce more & more  reforms and expedite the policies needed to increase the implementation of these reforms. So people are naturally more enthusiastic to know the outcome of the budget.

Most of the past finance ministers of India believe in the theory that budget should not the only key indicator for evaluating the performance of a government; rather it is a directional path to be followed for proper execution of economic and financial policies for a particular fiscal. So, one should not diddle much on the aspect of a particular budget, rather see the working pattern of the government for various efforts to implement the finance related policies already taken in the particular budget and very many decisions to be taken in the course of the year. More importantly, reviewing the policies and decisions and ultimately results accrued thereupon is more important to evaluate the performance of any government with respect to their consideration of economic reforms. Despite these philosophical utterances of the finance ministers, people will be mostly scrutinizing the budget as virtually the real indicator of performance of the government and their direction to fulfill  the people’s wish lists.

After the radical changes brought by the then finance minister Manmohan Singh in the year 1991, India opened the conservative gate of budget formulation. Dismantling the shackles of licensing raj, Singh created a furore in the history of politics and came out with such a courageous decision. Perhaps with similar type of expectation, millions of Indians and foreign nationals all over the world will glue to the television set and chew the words of Mr. Jaitley’s speech to find out how much it is beneficial to them and in what way?

The last year's budget by Jaitley is almost like a one day match, but this time he has to establish all his credibility to make this budget industry friendly, pro-reform and helpful for the common people to combat their financial burden and plight. He may provide an explanation that last year budget was just like a net practice, but the same commotion will not be effective this time to appease the countrymen. Moreover to counter the onslaught in the hands of AAP in the recently held state assembly in Delhi, Modi has to burn a much more midnight lamp to guide Jaitley to meet the expectations of the people of India and also the world.

Modi very rightly, exercised all his rhetoric power to change the image of India in the global map. Relentlessly, he has whisked past pillar to post and visiting many countries and had brought those countries' heads here to apprise them our zeal to increase the business & strengthen the trade tie-ups. In this process, he has assured them for adequate support system through the budget and bringing more reforms to provide a conducive business environment and he also says  to eliminate the red-tapism so as to  come out from the bureaucratic impasse and ensure them that he and his team mean end result. With these types of assertions from none other than the level of the Prime Minister, the world is eagerly waiting to know the crux of the economic reforms being contemplated by Jaitley in the forthwith  budget.

To present a bold and reform packed  budget, the finance ministry must come out from the thinking like a namby-pamby and counter the chaotic forces of the opposition parties In the parliament on the budget day. Though, for the past nine months, this government has made an amicable relationship with the opposition forces, centre-state cordiality has improved upon and Modi has not given much importance to political mudslinging. He has not even accused  and humiliate the opposition parties to get their wrath. He has shown the countrymen of his sincerity for a good governance. In fact, from the day one of holding the mantle of this government, Modi has identified very many useful buzzing slogans of “Make in India’” “Swachh Bharat” and “stashing out the black money,” and to bring the same in the economy and now through this budget announcement,  he has to prove some of his above desires to be implemented in the right direction.

 All are not that simple because this government does not have adequate numbers in the upper house. To make any bold decisions and strategies to increase the speed of reforms, if Jaitley comes out with any new proposal related to direct and indirect taxes, cut down the subsidies and take some steps which may hurt the emotions of the people causing the shrinkage in vote bank, the same needs to be faced firmly. In that case, the Government will try and try to persuade to accept their budget proposal and ultimately when they will fail, the whole purpose of a bold and courageous budget, will  not produce results. What Modi and Jaitley will do then? Already we have seen a number of ordinances have been promulgated immediately after the last session proposing to ratify various bills related to FDI cap in insurance, land acquisition act, coal block auction, e-Richsaws in Delhi and speed up the reforms in arbitration, etc. If any new proposal in the budget does not have any unanimous sanction in the parliament, Modi government functioning will be a question mark.

Whatever may be the political consequences, rivalry and acrimonious debates in both the houses of the parliament, Jaitley has to present a forceful budget with complete boldness as it was shown in the year 1991. Singh could do so, of course, with the help of Late P.V. Narshima Rao then why Jaitely can’t do with the help of ever aggressive charismatic and eloquent speaker Modi.   

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