Submit :
News                      Photos                     Just In                     Debate Topic                     Latest News                    Articles                    Local News                    Blog Posts                     Pictures                    Reviews                    Recipes                    
  
Interim Budget 2019: An academic perception
The interim budget of the size of Rs 2784200 crore for 2019-20 was presented by CA Piyush Goyal as Stepney of the Finance Minister Arun Jaitly in the Parliament on February 01, 2019.

The budget sounds popular in terms of the increase of 13.3 per cent of the budget size of 2018-19, fiscal deficit of 3.4 per cent of the GDP, fiscal discipline is visible, tax rebate up to 5 lakh, pension to the  unorganized informal labour, increase in allocation for SC welfare schemes by 35 per cent, assured 6000 annual income to farmers and above all little spiritual orientation of the budget by increased allocation for Rashtriya Gokul Mission and introducing National Kamdhenu Yojana as quick observations after listening the speech on the TV.

A close perusal of the proposals conceals more than reveals in the intricacies involved in the interim budget also called Vote on Account.

To realize full potential of Indian economy and Indians, the measures were necessary but not sufficient. To make the measures sufficient, we need population control on which NDA and UPA are silent and National Population Commission remained orphaned.

The honest taxpayers require more than appreciation of certain facilities such as travelling by First AC and by air and others pay more for these travels.

The digitalization of rural India is fine but need strengthening of  cyber lawa for taking care of cyber crimes as well as white collar crimes for which National crime Bureau must maintain records.

The gap between WPI based inflation rate and CPI based inflation rate  is not understandable.  Theoretically speaking, the CPI based inflation rate is always higher to WPI based inflation rate but the basket of commodities in both is different. The point to point based methodology involved in calculating both the rates of inflation convey that every month annual rate of inflation is calculated and is not higher to the previous month .I was hopeful for the reduced gap between the two inflation rate as a policy implication of the implementation of Goods and Services Tax (GST), if implemented honestly.

It is pertinent to observe that GST avoidance is taking place by the marketers in retail and insisting for cash payments for low price and tell the customers that GST will be charged if paid by cheque, ATM card or e-payment.

The economic growth in India is because of the Hindu growth rate has risen to 6 to 7 percent which is the built in capacity of the economy and can do better by motivational measures for all the sectors of the economy.

No change in the tax slab, merely Rs 500 per month for dignity of the small and marginal farmers sounds ridiculous as little sympathy for them whereas they deserve empathy.

The proposed expenditure on education has declined from 3.74 per cent in 2017-18 to 3.40 per cent in 2018-19 revised budget and further to 3.37 in 2019-20. This means no further strengthening of education and continued drive for privatization of education.

Aayushman Bharat is being claimed to be the biggest scheme for health insurance but if one goes to figures of budgetary allocation for health, it has been reduced from the level of 2017-18. In 2017-18 health expenditure was 2.47 percent of total expenditure, which was reduced to 2.28 per cent in 2018-19 and left unchanged in 2019-20. By implications if you discount inflation, it has further got reduced in comparison to the current financial year.

Rural development expenditure percentage which was 6.3 in 2017-18, reduced to 5.5 per cent in 2018-19 and 4.99 per cent in 2019-20, so rural development is at the lower key.

Even the expenditure for social welfare has declined from 1.89 percent in current financial year to 1.77 percent in 2019-20. Percentage expenditure on centrally sponsored schemes has declined from 13.33 in 2017-18 to 12.41 in 2018-19 and further reduced to 11.77 percent in 2019-20. Establishment expenditure has declined from 22.08 percent in 2017-18 to 21.04 in 2018-19 to 19.44 per cent in 2019-20, hence no measure to strengthen public sector. Rather it will be weakened.

The fertilizer subsidies have been declined from 3.1 percent of the total expenditure in 2017-18 to 2.85 in 2918-19 and further reduced to 2.69 per cent in 2019-20. Expenditure on food subsidies has been reduced from 6.97 percent in 2018-19 to 6.62 per cent in 2019-20. Expenditure on Scientific department has been reduced from 1.03 percent in 2017-18 to 1.02 in 2018-19 and 0.94 per cent in 2019-20. The increase in MSP of 22 crops is fine which is necessary but not sufficient. To make it sufficient, we need announcement of procurement prices also which is not the practice for the last many years.

By believing in the phrase 'Jai Jawan Jai Kisan', we need to face the challenges of Indian agriculture including suicides by farmers.We have to bring more land under cultivation for which we may think of nationalization of agriculture by acquiring land as advocated by Dr. B.R. Ambedkar. We can handover such land to the army for developing military farms which possess the potential to do wonders in terms of bringing barren land under cultivation and ensure rainbow revolution in Indian agriculture. 

To do justice with Indian farmers, there is a strong case for holistic, comprehensive and systematic approach in place of adhoc crisis management which costs too much to the nation including agriculture. We have to create a roadmap for inclusive growth in agriculture sector by becoming pragmatic with concrete plan of action instead of lip service to the farmers.

We have to stop negative subsidy for the farmers. The most practical solution for the prevailing problems of the farmers is to operate in the free market for inputs and output and stop making farmers victim of perpetually planned poverty (PPP).

The expenditure on energy has been reduced from 1.97 per cent in 2017-18 to 1.88 in 2018-19 and further to 1.58 per cent in 2019-20.

It can safely be concluded that the budget is not for farmers, not for rural development centric, nor for education, scientific research, health, nor for social welfare. It appears direction less and illusionary in totality as an academic perception.

For proving Incredible India as independent, nonviolent, democracy with integrity and amity ,we need to learn spiritual economics confining to needs (needonomics) and no to greed (economics of greed - greedonomics) which is nonviolent in nature for  living and working without worries.

*The writer is Vice Chancellor Jagan Nath University, Jaipur and an economist by training.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
COMMENTS (0)
Guest
Name
Email Id
Verification Code
Email me on reply to my comment
Email me when other CJs comment on this article
}
Sign in to set your preference
Advertisement
merinews for RTI activists


Advertisement
Not finding what you are looking for? Search here.