Elections Encore: Budget Encore
Written by Firydude on 2:32 AMOn 29th February the Finance Minister P. Chidambram announced a bonanza-budget catering the common man. Geared with the tax slab adjustments, excise duty reductions on cars, scooters, electrical appliances and lots of other products, the fifth union budget of the UPA government certainly lured the aam aadmi of India. This unprecedented focus on the middle and lower class in a budget drew much talks from the 
opposition which brandished the budget as a political exercise. With the left parties already breathing down the neck of the coalition setup on the nuclear issue, the current budget may act as a trump card if the citizens of India are made to exercise their franichise in the due course. No budget can be perfect because if it is possible then there will be no need to have them made every year. And the Chinese symbol of Yin-Yang also suggests the same thing: even the most perfect has the potential to deviate. The enticing budget for the current year too had certain deviations unaccounted for. One of the key features of the budget was the Income tax slabs adjustment from 1.1 lacs to 1.5 lacs for men, from 1.45 lacs to 1.8 lacs for women and even more for senior citizens. It does seem that the Income tax scissors spared the pocket of common man a little bit. But despite this income tax leniancy the common man is still left with a question that will this saving turn out to be an investment saving or a matador for the inflation bull. The inability of the current government to control the price hike makes this move of Finance Minister seem like "save more to spend more for same quantity". It seems that all one can save is a thought on this saving to inflation ratio. Much to the joy of common man, Mr. Chidambaram also announced a reduction in the prices of small cars and two wheelers to make them more affordable. But when one checks the exponential rate at which the petrol prices rise then this reduction in car prices seems like "save now on cars to stress your pocket later with petrol's uncontrollable expenses".
opposition which brandished the budget as a political exercise. With the left parties already breathing down the neck of the coalition setup on the nuclear issue, the current budget may act as a trump card if the citizens of India are made to exercise their franichise in the due course. No budget can be perfect because if it is possible then there will be no need to have them made every year. And the Chinese symbol of Yin-Yang also suggests the same thing: even the most perfect has the potential to deviate. The enticing budget for the current year too had certain deviations unaccounted for. One of the key features of the budget was the Income tax slabs adjustment from 1.1 lacs to 1.5 lacs for men, from 1.45 lacs to 1.8 lacs for women and even more for senior citizens. It does seem that the Income tax scissors spared the pocket of common man a little bit. But despite this income tax leniancy the common man is still left with a question that will this saving turn out to be an investment saving or a matador for the inflation bull. The inability of the current government to control the price hike makes this move of Finance Minister seem like "save more to spend more for same quantity". It seems that all one can save is a thought on this saving to inflation ratio. Much to the joy of common man, Mr. Chidambaram also announced a reduction in the prices of small cars and two wheelers to make them more affordable. But when one checks the exponential rate at which the petrol prices rise then this reduction in car prices seems like "save now on cars to stress your pocket later with petrol's uncontrollable expenses".The biggest contributor to the GDP of our country is the agricultural sector. With an increase in the number of farmers committing suicide due to the burden of debts on them, the loan waiver of Rs 60000 crores is seen as an elixir to the small farmers, atleast on the papers. However,
in reality the numbers suggest that in the state of Maharashtra alone, where the suicide cases are highest for farmers, two thirds of the farmers don't even qualify for the waiver. And even if some do qualify, how many of them actually prefer banks over private money lenders for a
loan? This also raises few questions: firstly what measures are taken in this budget to ensure that the farmers don't fall in the vicious circle again? Moreover is this waiver has a potential to send a wrong message all together? Is it an invitation to borrowers to take a fairly adventurous position on the agricultural projects with a clear knowledge that if they succeed, the gains will be theirs. But, if the project fails, the government is there to bail them out. If the budget process should be transparent, accountable, and orderly then why Mr. Finance Minister decided to take a quiete stand on how this huge amount will be repayed to the banks. However the opposition parties did answer and felt that this was a preparation to carry over the deficit to the next
government.
in reality the numbers suggest that in the state of Maharashtra alone, where the suicide cases are highest for farmers, two thirds of the farmers don't even qualify for the waiver. And even if some do qualify, how many of them actually prefer banks over private money lenders for aloan? This also raises few questions: firstly what measures are taken in this budget to ensure that the farmers don't fall in the vicious circle again? Moreover is this waiver has a potential to send a wrong message all together? Is it an invitation to borrowers to take a fairly adventurous position on the agricultural projects with a clear knowledge that if they succeed, the gains will be theirs. But, if the project fails, the government is there to bail them out. If the budget process should be transparent, accountable, and orderly then why Mr. Finance Minister decided to take a quiete stand on how this huge amount will be repayed to the banks. However the opposition parties did answer and felt that this was a preparation to carry over the deficit to the next
government.
One thing that current government deserves accolades for is the way Indian economy has grown over the past few years. Rupee is getting stronger against Dollar and it is a positive sign for the national economy, but there are labour-intensive sectors like textile, handicraft and leather products that are facing the negative repercussions of the ascelating rupee. Turning a blind eye to the export sector in the budget 2008-2009 and providing no respite for these sectors may not go down well with the commerce ministry and the exporters. 
People who earn in dollars and who were already struck by lower exchange rates, that lowered their pay packages, will now count even less as the budget has increased the service tax on money changing. Despite all the efforts made by the Finance Minister to attract the vote bank, there were some core issues that seemed to be ignored by this year's budget. With an increase in both the unemployment and the inflation percentage in comparison to last year, secluding both these issues from the budget's "hit list" is also concerning. The budget did come out with lots of proposals to boost Indian academia as well but only time will tell that how many proposals and promises made in this year's budget will actualise. Afterall its the bureaucrats that make these plans a reality. But Considering the current shape of Indian bureaucracy one can only wait, watch and hope.
People who earn in dollars and who were already struck by lower exchange rates, that lowered their pay packages, will now count even less as the budget has increased the service tax on money changing. Despite all the efforts made by the Finance Minister to attract the vote bank, there were some core issues that seemed to be ignored by this year's budget. With an increase in both the unemployment and the inflation percentage in comparison to last year, secluding both these issues from the budget's "hit list" is also concerning. The budget did come out with lots of proposals to boost Indian academia as well but only time will tell that how many proposals and promises made in this year's budget will actualise. Afterall its the bureaucrats that make these plans a reality. But Considering the current shape of Indian bureaucracy one can only wait, watch and hope.
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