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Considering the fact that Direct Taxes Code and Goods and Services Tax are in the anvil, nothing much was expected on the taxation front. But a lot was expected on policy pronouncements relating to inclusive growth and good governance. This opportunity could have also been better used in making clear the determination and zeal of the government in ensuring good delivery system.
While the contents of the Budget are impressive in the context of the allocation of funds, it is not so much convincing in capturing the resources for funding those allocations. The concern is not so much in the ensuing fiscal year in view of the 3G spectrum auction proceeds, but the dependency thereafter seems to be solely on the buoyancy in tax collections due to projected growth in the various sectors of the economy. This budget could have ideally been used to spell out measures relating to reduction in non-Plan expenditure which is equally critical for reaping the benefits of a growing economy.
The four strong pillars that could support growth at this time are healthcare, education, infrastructure and good governance. It is unfortunate that one of these four limbs, healthcare has been made costlier due to levy of service tax. Again, on the good governance front, enough emphasis could have been laid on the outcomes of the earlier year allocations and the progress made in the implementation of various social schemes and projects than merely talking about enhancement in allocations.
Recognising cold storage and fertiliser industry as part of infrastructure is a welcome measure. Nevertheless, the inadequacy of the progress made on the major infrastructure segments such as roads and power should have been comprehended and addressed. For ensuring transparency and accountability, both technology and probity in political leadership are vital. While the initiatives for bringing in technological interface are impressive, this budget could have given more comfort on the political will and inclination to bring in probity at the helm of affairs.
(The author is a former President of the Institute of Chartered Accountants of India.)
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