The Budget has significantly increased spending on education and introduced a number of schemes to increase employment and employability. A number of subsidies for SC/ST students, funds for Maoist-affected areas and banking facilities for habitations with population less than 200 are measures for uniform wealth distribution. Infrastructure building in all forms has been given acute attention. Infusion of Rs 30,000 crore for physical infrastructure and measures for IT infrastructure provide for not only increased economic activity but also a mammoth leap towards better, quicker and modern governance.
The government is focusing on the manufacturing sector and has introduced surgical measures to increase its share in GDP from 16 per cent to 25 per cent over the next 10 years. This is imperative for self-reliance on domestic production and development of Indian industry. India Inc will like the allowance of FDI in Indian mutual funds but will be disappointed that the Budget has remained silent on the furtherance of the reforms process for increased flow of FII & FDI in a number of sectors.
Overall, the Budget attempts to address inflation and food security, stresses on inclusive growth, changes no significant economic policy but misses out on reforms.
Shantanu Jindal
General Management Program 2011, Xavier Labour Relations Institute (Jamshedpur)
