REGENERATE REVENUES AND EASE EXPENDITURES !!!

Giriraj:- GDP growth of India came to its lowest point since 2008 at around 4.8% in the last half of 2012. Therefore, the industrialists, economists and politicians hinted about some economic reforms in the Budget of 2013-14. But, 2014 is a very crucial year for the UPA-II government as several scams and corruption have already ruined the image of Indian National Congress. Therefore, Chidambaram had no other options than to play some defensive shots to draw the match on the 5^th day instead of getting out in the 2^nd innings of the Test match by playing rash shots.

Meghdoot:- Chidambaram played the seam bowlers very well on a bouncy pitch. On one hand, he has not given too many advantages to the foreign companies, but, side by side, he has hinted that without some sound investments of the private sector companies, it is difficult to have a healthy GDP growth of Indian economy. Finance Ministry has allocated 10 billion rupees for ‘Nirbhaya’ fund. The Delhi gangrape of December 2012 compelled UPA-II to do something for the rape victims. But, where from this new expense will get adjusted?

Arindam:- Are you earning more than 1 crore rupees in a year? Then, you have to pay 10% surcharge on your income. Only around 43,000 taxpayers in India have their annual income over 10 million rupees. Are you a chain smoker? Don’t worry; you just need to pay some extra bucks to buy cigarettes. Pay more money and become a cancer patient. On the other hand, the tobacco companies like ITC will increase their PAT. As their PAT increases, the extra increase of corporate taxes and other excise duties will automatically increase the revenues of Indian Government. Dividend distribution surcharge got raised to 10% from 5%. 

Chandramukhi:- Ok! We understand that by increasing taxes and surcharges on certain things, the Indian Government can manage to do some expenses. But, still, the fiscal deficit will increase if you look at the recent allocations. Allocation of 330 billion rupees for rural employment schemes! Recently, we have found out that several panchayat samity members are taking around 10% commissions from the labourers for each 100 day work they do. So, is it not just an increased allocation to make panchayat members richer? 273 billion rupees for Sarba Shiksha Mission! Can anyone provide me the statistics how many villagers have really become literate enough? How many villages really get the benefits of Sarba Shiksha Mission?

Meghdoot:- You are going in too much depth. Everyone knows that around 30% of the funds of these schemes are really wastage. We can’t help it. India is yet to have a systematic top-down efficient monitoring system in its Panchayati Raj. What has Chidambaram declared for the infrastructure of our domestic sectors?

Giriraj:- Nothing so significant in this budget. But, yes, SIDBI’s refinance capacity has been doubled to 100 billion rupees. Even the Rural Infrastructure Development Fund corpus got raised to 200 billion rupees. Why 140 billion rupees got allocated to PSU Banks for recapitalization? Banking Bill has passed. Bipartite settlement may take place in 2013 itself. Mergers may happen for several PSU Banks. Then, why such allocations have been done in this budget?

Arindam:- Oh! There is a long story behind it. But, I must admit that there are some positive things for Banking and Insurance sectors in this Budget. When Allahabad Bank started acting as a corporate agent for LIC, many PSU Banks criticized the move. But, now, Finance Ministry wants all the rural people to have at least one life insurance from LIC and that through any PSU Bank. Private Insurance companies may get a good chance to enter Indian market if the Insurance and Pension Bills get passed. So, LIC may do far better in challenging scenarios to tap at least 60% of rural India under its insurance coverage schemes. Special emphasis given on creating Women’s Bank. Are Banks rejecting the loan proposals of women? Strange! Post offices have lost its glamorous and glorious days. So, it is a good move to transform post offices as CBS enabled mini banks. Many critics said that Budget 2013-14 is a very sleepy budget, but, one must not forget that Chidambaram is also a contender for the post of PM in 2014 polls. UPA-II suggested FM to “REGENERATE REVENUES AND EASE EXPENDITURES”.