The Hindu Business Line : The challenges before the Government

Just 140 days back, I had the privilege to present the Interim Budget for 2009-10. It is a rare honour that I have been called upon to present the regular Budget after the new Government assumed office.

The Congress-led UPA Government has come back to power with a renewed mandate. As the Prime Minister, Dr Manmohan Singh, said recently “It is a mandate for continuity, stability and prosperity. It is a mandate for inclusive growth and equitable development.” It is a mandate that we accept with humility and a firm resolve to do all that we can for the welfare of this nation.

I am deeply conscious of the faith reposed by the people in our Government and the responsibilities that come with it. I am sensitive to the great challenge of rising expectations of a young India. It reflects a population that is restless, yet engaged and is ready to seize the opportunities that it is presented with. There are new and powerful reasons for us to create, facilitate and sustain those opportunities. In the Interim Budget for 2009-10, I had stated that the new Government would need to anchor its policies for 2009-10, in a medium term perspective that would have to:

• sustain a growth rate of at least 9 per cent per annum over an extended period of time;

• strengthen the mechanisms for inclusive growth for creating about 12 million new work opportunities per year;

• reduce the proportion of people living below poverty line to less than half from current levels by 2014;

• ensure that Indian agriculture continues to grow at an annual rate of 4 per cent;

• increase the investment in infrastructure to more than 9 per cent of GDP by 2014;

• support Indian industry to meet the challenge of global competition and sustain the growth momentum in exports;

• strengthen and improve the economic regulatory framework in the country;

• expand the range and reach of social safety nets by providing direct assistance to vulnerable sections;

• strengthen the delivery mechanism for primary health care facilities with a view to improve the preventive and curative health care in the country;

• create a competitive, progressive and well regulated education system of global standards that meets the aspiration of all segments of the society; and

• move towards providing energy security by pursuing an Integrated Energy Policy.

The Government recognises the challenges that this task entails, particularly at a time when the world is still struggling with an unprecedented financial crisis and an economic slowdown that has also affected India. While we are determined to convert our words into deeds, Members would appreciate that a single budget speech cannot solve all our problems, nor is the Union Budget the only instrument to do so. Yet, it is an important means to share the vision of the Government, particularly as we begin a new term. I propose to do just that for the next hour or so, as I dwell on the challenges and outline the approach of the government in the short term and medium term perspectives.

The first challenge is to lead the economy back to the high GDP growth rate of 9 per cent per annum at the earliest. Growth of income is important in itself, but it is as important for the resources that it brings in. These resources provide us with the means to bridge the critical gaps that remain in our development efforts, particularly with regard to the welfare of the vulnerable segments of our population.

The second challenge is to deepen and broaden the agenda for inclusive development; and to ensure that no individual, community or region is denied the opportunity to participate in and benefit from the development process. The third challenge is to re-energise government and improve delivery mechanisms. Our institutions must provide high quality public services, security and the rule of law to all citizens with transparency and accountability.