It is
good to observe that the Union Finance Minister P Chidambaram eyeing on ensuing
Lok Sabha Poll, did not announce uncontrolled populist measures in the Interim Budget
2014-15. At the same time, he failed to point ways for expansion of Indian
economy in near future. In fact he was keen to highlight achievements of UPA-I and
UPA-II Government rather than chalking out steps to enhance effectiveness of
Government policies relating to social and economic issues in a sustainable
form.
Though
subsidies are increasingly becoming burdensome, Finance Minister carefully refrained
from taking any steps to rein in subsidy regime on his pre-Poll interim budget. To cut down fiscal deficit from 4.8%
to 4.6%, Budget proposed slashing funds for social sectors depriving weaker
section of the society. Reduction in social sector spending will hamper expansion
of market and put a break in growth. It is observed, spending cut in important ministries and departments like telecom,
power, road transport and highways, rural development, women and child
development, drinking water and sanitation, health and family welfare, school
education and literacy, higher education etc relating to Government's flagship programmes will affect flow of investment and hence will slow
down growth. In short, Chidambaram attempted to slash fiscal deficit not
by controlling unproductive expenses rather by dimming prospect of prosperity.
Noticeably,
corporate sector continued to enjoy Government’s favour. No significant
proposals were made for employment generation, but on the contrary, the scope
of employment has been shrunk.
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