So the budget is slated to be released on 28th Feb.Lets help our FM to repeat the dream budget of '91.Here are my five points for the FM:
1. Control inflation: As we know inflation has touched 6.73%, the foremost goal for FM should be to introduce reforms to tackle rising inflation.There are various measures which have been taken but have not produced fruitfull results such as increasing the excise duties on products like cement to check the producers tendicies to eat the consumer surplus.According to me the imports of agriculture products should be minimized so as to improve their supplies.2. Sunstain the current growth: It has been a dream run for Indian economy with growth rate above 9%.Our next target is to reach a double digit growth rate.The FM should introduce policies which are able to sustain aswell propel the existing growth rate.3. Encourage more FDIs (Foreign Direct Investments): I came across the news that Mittal-Arcelor are planning to acquire 49% of HPCL's Bathinda Refinery. Till now there has been a cap of 26% on FDIs in public sector units.So the norms should be relaxed to encourage more foreign investment participation.4. Make provision for the SEZs: I consider SEZs to be a key player in our economic growth.I agree with the plight of the farmers whose lands are been taken away, but in return the companies are providing good incentives such as free technical training for one member of each family which would enable the person to earn upto Rs 4000 a month.Also they are distributing a good percentage of fertile land to each family.So in view of these incentives the FM should definitely make some provisions to encourage SEZs5.More investment should be encouraged: Inflation has arisen due to mismatch in demand and supply.The demand is in excess of supply.So if the consumers are encouraged to save more rather than expend, inflation problem can be tackled.So some tax exemptions in investments upto a fixed amounts can be introduced.The interest rates on savings in banks can be increased to entice more investment.
Well there can be thousands of such points but I would like some points to be discussed by the readers.Pls give your comments on this one, this affects all our lives.
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2 comments:
in addition to the suggestions made by u my friend, i think ban on forward trading in foodgrains can go a long way in controlling inflation....but i dont agree wid ur view point that demand shud be curtailed because then it wud b difficult to sustain the miraculous growth which india is experiencing.instead of focussing too much on demand side variables we shud emphasize more on the supply sided variables because that alone can bridge the demand supply gap without disturbing the growth rates!!!!!!!!!!
Thankyou for you comment. I have however emphasized on both the supply and demands. If the demands can be curtailed whats the harm in it. The dream run of high growth rate would not come merely by how rich the people of India are getting. The demand has been very high from the richer segments of the society and this has really been a curse for the poor segments who have to pay more although they cant afford it.
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