States told that additional funding “would not be like pouring water into a bucket with holes in it”
If the Union Budget was expected to make some special concessions for West Bengal to placate Chief Minister Mamata Banerjee, there was no hint of it in Finance Minister Pranab Mukherjee's speech on Friday. Indeed, it was a speech singularly short of any political message; nor indeed, did it have a strong social message, as most of the schemes mentioned are already in place, with the government just making additional allocations. Perhaps, the only social sector issue that Mr. Mukherjee highlighted as part of the five objectives to be addressed in this fiscal year was to “intervene decisively to address the problem of malnutrition, especially in the 200 high burden districts.” If it did have a message, it lay in Prime Minister Manmohan Singh's interview to Doordarshan on the budget, that the government intended to govern, and it hoped to have its allies on board.
Interestingly, that message appeared to have got across to the Trinamool Congress. For despite the fact that West Bengal only got a flood management project in Murshidabad, a Congress-controlled district, and Rs. 50 crore to establish a world-class centre to improve water quality in Kolkata, the Trinamool MPs seemed low key on Friday, describing the budget as “tolerable.” Of course, Trinamool Leader in the Lok Sabha Sudip Bandopadhyay did mention the fact that West Bengal, like Punjab and Kerala, was “in a debt trap” and wanted a three-year moratorium. But government sources told The Hindu that the Centre had made it clear to all three States that it wanted to see some signs on the part of these State governments that additional funding “would not be like pouring water into a bucket with holes in it.”
The message that the UPA government, evidently, wants to send out through this budget is that its focus will be on strengthening the economy, stimulating growth and on revenue generating measures. “If India can continue to build on its economic strength, it can be a source of stability for the world economy and provide a safe destination for restless global capital,” the Finance Minister stressed at the start of his speech.
Later, in an interview to Doordarshan on the budget, the Prime Minister indicated that he intended to walk the talk: “The Finance Minister has pointed to the need to control subsidies. He has also said that he would bring the subsidies to less than 1.7% of the GDP in the next three years, “ he said, adding, “Now, that is obviously a task which would, I think, require the government to put forward an effective programme for adjusting the prices of petroleum products, and adjusting other relevant prices. So we have to bite the bullet.” Asked whether Mamata Banerjee was on board, his reply was firm: “Well I think these are compulsions of managing a coalition. There will be difficulties. There have been difficulties. But ultimately, if the government is to govern, it must have a sustainable strategy for managing the economy. I sincerely hope, when the time comes to take relevant important decisions which are tough, we will consult all our allies and take them on board.”
That is probably the message of this budget: that the government intends to govern, and the allies need to get on board.
Keywords: Union Budget 2012, fiscal deficit, states fund allocation, GDP
There seems to be a lot of frustration pouring in from many directions, especially the 'middle class'. I for one consider that access to internet and mobile phones should place me in middle class. I must say, keeping aside my jelousy toward the uber rich, and general hatred to those with ill gotten wealth(aggrivated by the helplessness of law &order and judicial system), I think the economy is doing resonably well(atleast for the middle class). Many seems to be compaining about price rise. To me, prise rise of essential elements shows a rise in demand, or in other words more more peopel are able to access them(ofcourse, there is globalisation too!). If the prices should remian less, CONSUME LESS. And finally, I always wonder, if the prices of vegitables go up, wont the farmers earn more? I hope sense prevails over hatred and frustration.
There seems to be a lot of frustration pouring in from many directions, especially the 'middle class'. I for one consider that access to internet and mobile phones should place me in middle class. I must say, keeping aside my jelousy toward the uber rich, and general hatred to those with ill gotten wealth(aggrivated by the helplessness of law &order and judicial system), I think the economy is doing resonably well(atleast for the middle class). Many seems to be compaining about price rise. To me, prise rise of essential elements shows a rise in demand, or in other words more more peopel are able to access them(ofcourse, there is globalisation too!). If the prices should remian less, CONSUME LESS. And finally, I always wonder, if the prices of vegitables go up, wont the farmers earn more? I hope sense prevails over hatred and frustration.
Good news for the AAM aadhmi.The Mango season is coming!!!!!
The defence budget is eating into other welfare scheme.Import of items of unnecessary and inflated needs should be probed.The so called veil of secrecy needs to be lifted as the defence procurements are mirred in corruption
I think the budget message is "The government intends to govern. But
we don't know what to do". The single most driving factor for the
government seems to be spend all and pass the expenditure to tax
payers. I believe the time has come where the subsidies on petrol and
diesel should be completely eliminated and open up the energy sector
to private players. This might increase the cost for a short time but
over long term market forces will align and arrive at right price.
Everybody is aware of the Mauritius FDI scam but it looks like
government wants to profit from it rather than addressing the issue.
This union budget is not for "AAM ADMI".How middle class people survive?
Is this a budget? Who wants your GDP? What is the cost of living ? How can even middle class people survive? Indusdtrialists and politicians money is shown in GDP but not real money available for poor and others.
At a time when the World economies are reeling, the last thing India can afford is an election and more uncertainty about economic growth. Therefore, The Government has sent a stern message or infact read the riots act to TMC etal that they mean business. Two years of steady growth and then 2014 will be a different game! I remain confident that 7.6% growth will be achieved through some deft handling by the able minds in External Affairs. Keeping channels open with Iran will be an excellent conduit to Iran and this will be useful for Obama too, who does not want a war during an election year. There is a real possibility that Crude prices will fall and this will help the US and Indian economy. All this will lower fuel subsidies . Keep going Dr. Singh. We know what the alternatives are!
In a country where 80% live on 20 Rs per day and 50% have no toilets, is it a good thing to have a "it was a speech singularly short of any political message; nor indeed, did it have a strong social message"? About cutting subsidies, what is it, if not a political message? About oil subsidies, is it difficult for the author of this analysis to find out that a big part of oil prices in India is tax, thus the government is plain lying here? The government's decision to "govern" as you say, is about turning its back on the vast majority of people, and for the corporate interests.
Please Email the Editor