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Yes, in a way he is making a serious attempt to boost the economy by increasing spending, but the fiscal deficit hasn't been curtailed and it may not yield the results he hopes for.
Is this a populist, please-all budget?
Yes, it tries but may not please everybody. It provides large subsidies for unplanned expenses and it will be difficult to restrain the deficit. Food subsidies will eat all the revenue and will be fatal for the treasury. I think the 17 per cent increase in the allocation for education is minimal. We need to make education compulsory and free up to the high school level. If we manage to educate an entire generation they will take care of succeeding generations, and this is what India needs to get our people out of the poverty trap.
Will it help the economy, create jobs, restart stalled projects?
It may boost housing and equity funds. Increased public spending and affordable housing will provide a boost to construction, cement, steel and other sectors. But no clear policy on agriculture has emerged. That's a shame. We need to get the Great Indian Middle Class into the entrepreneurial mode by encouraging them to start businesses which will create employment and a sustainable future for India's youth.
Will it help UPA win votes in the general elections?
UPA would certainly wish for this, but its image has taken a severe beating due to the enormity of the scams that happened under its watch. There is a mood of unrest in India which these Budget provisions may not be sufficient to alleviate.
Prasad Bidapa,
Image & Style Consultant
