Beruflich Dokumente
Kultur Dokumente
Firstly,
being
the
1st
fiscal
budget
of
the
new
NDA
government,
it
was
anticipated
to
display
a
plan
for
the
next
4
years.
Secondly,
Its
is
the
first
undisputed
majority
in
the
Upper
house
in
last
thirty
years,
and
the
elections
were
contested
on
the
grounds
of
revolutionary
changes.
Economic
Consolidation
NDA
government
was
expected
to
bring
about
fiscally
effective
announcements
in
this
budget.
This
was
due
to
several
factors
in
favor
of
NDA.
The
government
received
great
economic
relief
due
to
the
reduced
crude
oil
prices
via
reduced
subsidies.
To
the
governments
credit,
NDA
has
put
several
efforts
for
reducing
petroleum
subsidies.
Also,
the
Finance
Commissions
recommendation
to
expand
the
resource
share
of
states
(32%
to
42%)
does
not
impact
the
finances
of
center,
as
it
just
brings
the
spending
to
the
state
government
(which
is
the
right
place).
Further,
the
shutting
down
of
planning
commission
gives
a
much-needed
opportunity
to
the
government
to
repair
the
broken
financial
system.
The
estimates
of
the
budget
are
grounded
on
GDP
growth
of
8%
and
a
low
inflation
of
5%.
The
new
GDP
estimates
are
very
stimulating
as
they
show
a
stronger
economy.
To
save
the
Indian
credit
rating
was
teetering
from
getting
sub-graded,
Chidambaram
had
made
a
sincere
commitment
for
a
fiscal
adjustment,
to
which
the
markets
had
responded
positively.
Jaitley
has
unfortunately
announced
to
modify
this
plan
by
seeking
another
year
to
get
to
the
3%
target.
This
is
not
a
wise
step
as
the
economy
will
be
stronger
with
better
fiscal
policy.
And
if
the
rationale
was
increasing
the
investments,
the
money
should
have
been
generated
from
disinvestments
of
sectors
not
needing
government
or
reducing
the
skyrocketing
subsidy
bill.
Deserting
the
fiscal
reforms
is
not
the
correct
way
for
public
investments.
The
end
of
Planning
Commission
The
failures
of
the
Planning
Commission
are
well
known
and
are
regarded
as
central
to
many
economical
failures
of
India.
NDA
took
a
strong
progressive
step
by
abolishing
this
body.
But
this
step
requires
a
parallel
re-engineering
of
government
for
ensuring
accountability.
This
can
be
done
by
the
help
of
non-
government
agencies
which
measure
that
the
ministry
has
delivered
on
its
commitments.
And
any
failure
in
this
should
have
consequences.
This
is
the
way
the
fiscal
systems
work
in
developed
nations.
The
budget
has
done
some
re-engineering
needed
due
to
this,
but
only
minimal.
Most
of
the
schemes
that
were
a
part
of
Planning
Commission
(PC)
have
not
been
terminated.
The
budget
appears
to
ignore
the
fact
that
PC
has
shut
down.
On
the
other
hand,
Niti
Ayog,
which
was
established
for
being
a
think-tank,
has
been
allocated
thousands
of
crore.
This
is
not
what
a
think-tank
expenses
are
like.
It
appears
as
if
just
the
name
Planning
Commission
has
been
taken
away,
the
processes
and
budgetary
allocations
remain
the
same.
Jaitley
has
come
up
with
an
idea
of
stimulating
the
PPP
model
in
infrastructure
development.
By
making
the
government
hold
a
greater
part
of
the
risk,
the
idea
is
to
rebalance
the
risk
in
these
projects.
Though
the
idea
is
great
but
it
introduces
threat
of
losses
and
possibilities
of
private
partners
contributing
to
just
riskless
aspects
of
the
project
like
construction.
Adding
to
this,
the
governments
history
of
selecting
the
projects
has
been
dismal
I,
thus
shifting
the
burden
on
itself
is
a
very
poor
idea
and
might
to
more
harms
than
goods.
There
have
been
some
positive
reforms
too:
there
is
an
announcement
of
new
law
on
procurement
and
dispute
handling.
There
has
been
an
initiative
to
bring
about
new
law
on
regulations
in
infrastructure.
In
conclusion,
though
the
budget
has
promised
a
slew
of
reforms
and
policies
that
are
pro-economy,
the
budget
has
disappointed
us
in
many
aspects.
There
have
been
many
positive
initiatives
and
announcements,
but
the
government
still
needs
to
chalk
out
a
measured
and
properly
managed
plan
to
bring
about
these
reforms.
Lets
see
what
the
future
has
in
store
for
India.