The Budget has attempted to address infrastructure investment and consumption-driven growth in a difficult economic environment and must be seen in the context of the three challenges and priorities listed by the finance minster — Lead the economy back to a high GDP growth of 9 per cent at the earliest; deepen and broaden the agenda for inclusive development; and re-energise the government and improve delivery mechanisms.
In a variety of areas, this is a “Tinkerer’s Budget”without any significant breakthrough thoughts or measures. For example, the abolition of fringe benefit tax is positive but countered by an increase in MAT for corporates from 10 per cent to 15 per cent. The emphasis on inclusive development is right. However, the allocation in education is skewed towards setting up of new IITs and higher learning institutions without a concomitant increase in the quality and reach of primary education, which is basic to democratising education and facilitating inclusive growth.Whilst the allocation on infrastructure development has increased, there is no emphasis on policy.
