What the Budget Need to Do ? ? ? The Check List ~ Stay Updated

A budget is just not only an estimate showing the sources of funds and how those are spent. An effective budget should address to the present problems a country is facing and also should efficiently cater to the needs of the people of the country and help them to lead a better life. Let us take a look at what are the issues that need to be addressed in the coming budget.

Set Fiscal Goals and Clear Goal Posts

Budget should provide a clear road map for fiscal consolidation, so that the Reserve Bank of India could began to ease monetary policy to stimulate demand. Lay down clear goals for Fiscal consolidation and the measures that the government proposes to take to ensure those goal posts are reached.

Clear Projects Fast

A country’s development depends on the infrastructure it has. China has already shown what infrastructure can do to a country. Necessary funds should be allocated to complete the pending projects. The budget should send a clear signal of Government’s resolve to fast track projects especially in the coal and power sector that have been stuck for administrative reasons.

Push Key Reforms and Focus on Supplies

The budget should give some indication of how government proposes to handle the bills pending in parliament and tackle issues such as Diesel Subsidy and FDI in Retail. A blue print to ease supply constraints so that inflation doesn’t accelerate once again and growth picks up pace.

Fund Sectors Creating Jobs and Support MSME’s

Make investments in labor- intensive sectors to take advantage of China’s expected fall in exports as the neighbouring country deals with rising labor costs and shifts its focus to domestic market. Support and sustain micro and small enterprises that are a major source of employment generation. Ensure inclusive growth that is well distributed among all sectors and segments so that higher demand for goods of all categories leads to more employment creation.

Make Subsidies Transparent and Plan Better Subsidy Transfer

Bring more transparency in provision for subsidies in the budget, clarity of petro products and put urea under the nutrient based subsidy regime. Design framework for cash transfer of subsidies through the AADHAR number for better delivery and efficiency in subsidy management.

Cut Deficit

A strong fiscal consolidation commitment will allow the RBI to cut interest rates which could stimulate spending on durables.

Spread Banking and Expand Insurance

Take organized finance to unbanked areas can help improve rural demand through access to cheaper credit. Availability of cheap health and life insurance through government efforts can help reduce financial stress and indebtedness, which will help spending.

Manage Inflation and Transfer Cash

Remove bottle necks in the supply chain to help check food inflation, allowing consumers to spend on other goods. Provide subsidies through cash transfers to check leakage and put money in the hands of the deserving.

Expand Funding and Ensure faster Clearances

The access to foreign funds has increased, but this has benefitted only the big borrowers. Further strengthening of institutional mechanism needed to fund small developers. A mechanism for faster clearances for large projects can cut down the delays in big infrastructure projects.

Link Farmer to Market

Incentivise mechanisms that link farmers to markets. Give tax breaks to companies that connect with producer groups, provie extension services and create networks that connect farmers, processors and retailers.

Let us know what additional things you look in a Budget so that we can Update the list