The Budget must truly provide succour to the Aam Aadmi and protect him against inflation in terms of daily consumption and necessities , including food grains. The Budget should be growth-oriented and achieve double-digit GDP growth.
It should not be populist, as generally apprehended, keeping in view the General Elections in 2009. The Budget must create an environment for providing more employment for the country’s youth by addressing the hitherto neglected informal sector of the economy.
The Centre should not resort to so-called communal budgeting, since poverty knows no religion. It should not encourage schemes which will divide the nation based on religion, which may even encourage religious conversions . Such discrimination based on religion will adversely affect the entire social fabric of the nation.
Instead of creating more and more centrally-sponsored straitjacket schemes for the entire country, the Centre should transfer funds to the states to undertake such development activities which suit the specific requirements of a particular state. It is time the Union Budget considered policies to plough back resources from the parallel black economy to fund various physical and social infrastructure projects in the country. Needless to say, adequate care should be taken to protect the interests of honest taxpayers while devising such schemes. If India has to grow fast, its Budget must focus on power generation.
Special budgetary allocation for setting up power stations via public-private partnership must be focused on. Ten-year tax breaks for companies investing in power generation and taxfree bonds should be introduced to encourage rapid investment in this area. The central government should encourage /reward state governments for policies that help reduce carbon emissions. State governments’ loss of revenue from various state and local taxes should be made good by the Centre. Also, funds should be provided on a grant basis by the Centre to states to improve capacity for monitoring carbon emissions.
Similarly, there should be a better package to encourage non-conventional energy in the Budget. I also look forward to a special provision for Bio-fuel Mission in this Budget.
In recent years, there has been a tendency of announcing certain schemes in the Union Budget wherein the financial burden is borne by the states. For example, the scheme of 7% interest on agricultural loans, though announced by the Centre, has to be borne financially by the states. Such schemes announced in the Budget should be totally funded by the Centre.
Railway Budget
I would also like to make specific suggestions on the Railway Budget. Traditionally, the Railway Budget in India is by and large dictated by popular pressure.
The Railways also needs to have long-term vision. The Golden Quadrilateral programme of the National Highways Authority of India, initiated during NDA rule, brought about pathbreaking changes in the road sector.
A similar vision targeting year 2020 is also needed for the Railways in India and it should be reflected in this Budget. India, with a population of 100 crore, has tremendous potential for religious tourism, which itself can trigger huge economic activities. Private sector should be brought in for running trains specifically meant for special circuits, based on popular religious tourist destinations.
In the end, I would expect the Budget to promote competitiveness in the economy. It would be in the interest of the nation that the Budget promotes efficient utilisation of resources and incentivise progressive states to do even better. In this context, Gujarat has achieved a revenue surplus of Rs 1,770 crore in 2006-07 after completely wiping out its revenue deficit which stood at Rs 6,730 crore in 2000-01 .
ON THE JOB
Create jobs for youth by focussing on the informal sector
POWER POINT
Special budgetary allocation for setting up power stations via public-private partnership. Offer 10-year tax breaks to companies and float tax-free bonds
RAIL TRAIL
Rail Budget should come out with a Vision 2020 plan on the lines of NHAI’s Golden Quadrilateral programme
FREE STATE
States should be given funds and freedom to devise development schemes that suit their specific requirements
CARBON COPY
States should be rewarded for policies that help reduce carbon emissions
Promote efficient utilisation of resources and incentivise progressive states to do even better PIOUS PROFIT
Private sector should be roped in to promote religious tourism (The author is chief minister, Gujarat)
