While welcoming the initiatives to revive the derailed economy, Loksatta Party President Jayaprakash Narayan said the budget was short on specifics.
While welcoming Union Finance Minister Arun Jaitley's initiatives to revive the derailed economy and fulfill the people's aspirations, Loksatta Party national President Dr. Jayaprakash Narayan said the 2014 Union Budget was short on specifics in some matters, and outright deficient in some others.
Addressing a media conference, JP pointed out that there was welcome continuity in following the previous government's road map for reining in the fiscal and revenue deficits. The budget had sought to promote manufacturing and improve infrastructure by offering customs duty, excise and income tax incentives. It had outlined measures to attract investments in a number of sectors, and plans to expedite the introduction of GST (Goods and Services Tax). It provided income tax relief by raising the exemption limit, and there were added incentives for savings. All these were positive steps which would stimulate the economy, build infrastructure and promote jobs, JP said.
He noted that the Union Finance Minister had clearly stated that the assurances to both Telangana and Andhra Pradesh would be honoured, and announced the opening of certain educational institutions.
However, the Union budget, JP said, was vague in certain matters. "Mr. Jaitley has not specified how he is going to reduce the nearly Rs. 3 lakh crore subsidies on food, fuel and fertilizers. He has just chosen to appoint an expenditure management commission. He has not spelt out how he is going to rein in the fiscal deficit, and seems to be banking on a nearly 20 percent increase in tax revenue, unfazed by the anemic economy. He has not outlined how Rs. 2.40 lakh crores will be raised to meet the capital adequacy norms of public sector banks, or how public sector undertakings will invest Rs. 2.48 lakh crores," he remarked.
JP also said that the budget had failed to address problems in the agriculture, education and healthcare sectors. 50% of the country's population continued to depend on agriculture although its contribution to GDP was only 14%. The budget ought to have contained measures to boost, for instance, production of oilseeds and pulses by imposing duties on imports, and offering production incentives to farmers. Instead, the government was resorting to knee-jerk reactions like banning the export of produce like onions and potatos, and bringing them under the purview of the Essential Commodities Act. Only higher production, supply chain logistics and value addition would reduce inflation while enhancing farmers' incomes, he said.
JP said the budget did not provide any road map for ushering in a national health service as in Britain. It had not attempted to address the problem of appalling educational standards in schools and colleges, either.
JP pointed out that the next 10 years were crucial for India. People had for the first time in a normal election after 1980 given a clear mandate to a single party in the hope that it would help them realize their hopes and aspirations. All our energies and resources should be focused on employment generation, economic growth, creating opportunities for all, and eradication of poverty, he said. If we miss the bus now, two generations will pay a heavy price, and the 21st century would bypass India, he warned.
JP expressed hope that the NDA government would live up to people's expectations by undertaking a course correction in the areas he referred to.
Loksatta leaders Katari Srinivasa Rao, Bandaru Ramamohan Rao and N. Saroja Devi took part in the media conference. (INN)