On Feb 29 ,our finance minister Mr. Arun Jaitley has announced “The union Budget 16-17”. In this year budget according to Raghuram Rajan, Jaitley didn’t follow the growth model (As John Maynard Keynes pro growth model) rather than follow the stability model. In the previous year the Modi government had announced to stick the overall GDP(16-17) between 8 – 8.5 . But as we know in some state drought and less rainfall are liable to come down the GDP to 7.6. All though in different sector we did not perform well enough till now ,more or less from my opinion Jaitley’s budget will help the poor as well as lower middle class family in India.
WHY BUDGET ?
Budget is a annual financial statement about all expenditure and receipt of a entire country . The expenditure part always comes first because the government adjusts income to expenditure after expenditure the receipt part of the previous year will come. The receipt and the expenditure of government is divided into two parts :
- Revenue Receipt,Revenue Expenditure.
- Capital Received,Capital Expenditure.
According to article 292 government can borrow any amount of loan from inside India as well as outside India.
THRUST AREA OF THIS YEAR BUDGET.
The major areas which the government has to noticed when preparing a union budget area GDP, INFLATION, FD, FDI, FII, CAD, TOTAL TAX RECEIVED , FOOD PRODUCTION , AGRICULTURE, SUBSIDY and FOREIGN EXCHANGE RESERVE etc. According to this year budget our GDP(7.6) is stable the main in-stable portions are the FD, FDI , FII , CAD and FOOD PRODUCTION , AGRICULTURE.
All though (WPI+CPI) the inflection is more or less reducing but still we need some more stability in case of CPI. In the case of CAD we have done extremely unwell because our import is continuously reducing than export.we need to focus MAKE-IN-INDIA. Another two sectors have done continuously unwell that is FDI and FII. In case of FII it is running in negative because the foreign investors pulled out (Hot Money)the money from the Indian Institution so we need to improve our specially Educational Institution FDI also has been come down from 34.8 B$(2007-08)to 21.5 B$(2013-14) to 16.6B$(2015-16) maybe the foreign investors is not feeling to secure to invest in India. That is why jaitley has open the agriculture and the food processing sector with 100% FDI and then may the foreign company will be Interested. In the case of food production may we have done well but still their is a need of another food revolution to push the food sector more large .
PROGRESS SO FAR
- Jaitley this year mainly focused on the agriculture and the rural sectors:
- Have been allocated Rs. 35984 cr. for agriculture and farmer wellfare.
- PMKSY- 28.5 lack hectares will be brought under irrigation.
- 5 lacks ponds are wells digging will be taken up under MGNREGA.
- 4 new dairy projects (850cr),’Pasudhan sanjivani’,’NakulSwastha patra’ ,’E- Pashudhan Haati ‘ , National Geometric center.
- Pradhan mantri fasal bima yojna – Rs.5500 cr . have been allocated.
- Highest amount in MGNREGA ever- Rs.38500 cr.
- 100% village electrification before 1 may 2015.
From my opinion this year budget have allocated highest number of allocation in agriculture and rural sectors ever since 1951. But we need more effective irrigation system and ground water resources for agriculture sectors. As i am writing small review about budget 2016-17 , i dint cover-up the all sector that Jaitley has announced in his budget(Social Sector, Education, Skills , Job creation, Infrastructure , Financial Sector, Technology). The government should step forward with very consciously further so that there budget will not blamed itself a false one. we the poor and the lower middle-class family who are faithfully looking to this budget may will get exactly the budget is. At last i want to refer that there are lots of sector which have not been developed yet, lots of works are still pending . Its turn for Modi government to do a massive change for India and own the faith from us.