Union Budget 2012-13 - My view

Good Afternoon,,,,,,,

I was off for my lunch.

Mr. Pranab Kumar Mukherjee, Honourable Central Minister for Finance, presented the eighty first budget in the Lok Sabha. A Simple sentence on the budget by a common man may be that the budget is totally inconclusive and nothing to spot on. Middle Income Group are mainly targeted through routing the fund towards Capital market Instruments.  They are given some soap. But still there is something which will adversely affect them. I shall come to that later.

What I felt when I heard the revenue expectation and the amount of spending ie expenditure, is that its actually making the common man a fool. Stating that 99 per cent of the last five year plan was successfully utilized and still India feel the malnutrition and sanitation problems and other health problems.

Actually what is that we are missing? Its nothing but the will to say something rigid. I don’t think he is coward. Subsidy will be decreased. But he failed to mention how? Providing direct subsidy to farmers is a good idea for food and Fuel. This will be only to the people below poverty line. This is where the middle class will be affected. Many of the middle class in Kerala and in India, depends on the Public Distribution System(PDS). They get gas subsidy. The implementation process will adversely affect the middle class in a big manner and the family budget may decline.

Another blow by Mr. Pranab, all are indirect, to the middle class, is regarding reduction of subsidy of Petroleum Products like Petrol and Diesel. Soon the price determination of the Diesel will be left to the petroleum companies, then the rates are sure to shoot up or the government may decrease the subsidy provision and may ask the companies to raise the prices.

Agricultural loan provision to farmers will be provided at a rate of seven per cent. Further if the repayment is satisfactory, then a subsidy of three per cent will be made. What a joke. It should be noted that the agriculturalists and agricultural labourers are subject to pay interest first for seven per cent and later it will be subsidized. What is the use? Provision should be made by the government to provide collateral free loan at four per cent to agriculturist. If he is a large farmer he can be provided with an interest of seven percent. The concession should be provided in such a manner that in case of loss of agricultural produce, then government should write off the loan. This is applicable to small and marginal farmers and agriculturists and not to Large Farmers.

No measures are seen to strengthen the co-operative sector in the country. When the country is moving through a phase of new liberalized economy, steps to revitalize the co-operative sector should be taken. In fact, it is never seen.

Schemes are made to woo the people of the northern India. It can be seen that the public sector undertakings are not been strengthen and more role is provided for Private Public Partnership. He has reiterated that there will be fifty one percent holding of the PSUs but will raise Rs. 30000 Cr.  through disinvestment. There can be foreign buyers too for this.

Anyhow, Mr Pranab has pointed out that We are going through a crisis and off late we are also facing the trouble. In fact, he pointed out that the performance of Indian Economy is rather disappointing. He mentioned the global crisis, but we need to look into another aspect to see whether it is the real reason or is there something inherent in us which makes us perform in this manner.