Baffling Budget

The presentation of Budget, whether by the Union government or the state government has always been an anticipated event as the overall outlook and the intention of the government is determined by the financial budget. Government Budget is a subject of immense importance for a variety of reasons including allocation of the limited resources, determination of planned approach to government’s activities, instrument of economics policy and program, integrated approach to fiscal operations, affecting economic activities, index of government’s functioning, public accountability among others. Yet the maiden annual state Budget presented by the new BJP-Led government turned out to be a disappointment for those who are eagerly anticipating various positive changes from the previous Congress government.
The biggest indicator of the state government going back on the various promises and plans of infrastructural developments it announced with much aplomb and grandeur is the share of capital expenditure allocated out of the total expenditure. A capital expenditure of just twenty percent would certainly mean curtailing various long term development plans since these development activities entail huge capital investments which is contradictory to the budget estimate prepared by the state government. Another major concern which the state government needs to take note of is the composition of Revenue Receipts where Grant-in-aid from the centre constitutes 53 percent of the total amount. This figure clearly demonstrates the extent to which the state is depending on the centre for almost everything. This in turn indicates the hold that the centre has on the state government. With various issues whether political, social or financial plaguing the state for so long, the figures tells a sad story- of how the centre can possibly influence or impose its decision which might very well go against the aspirations and wishes of the public thereby giving raise to protests, agitations and social restlessness. The figure should be viewed as a wake-up call for the state government to draw up a pragmatic long-term plan to increase the share of contribution of the state towards total revenue receipts. The avenues which can help increase the share of state revenue receipts namely agriculture and tourism has been relegated to non-relevance as reflected in the budget. All the talks and rhetoric about improving the plight of farmers and increasing productivity turned out to be just that- rhetoric. What the state need at the moment is a long-term plan to increase the productivity as well as participation of the farmers in raising the earnings from the sector. A sustained action plan backed by determined officials who can oversee the proper implementation can bring about a positive change in this regard. Haphazard and half-drawn plans cannot capture the attention of tourists. A well-thought out plan with the involvement of local teams and interest groups together can ensure that the tourists can once again focus their interest in the state.
Perhaps the biggest disappointment of the present budget is the narrow and limited focus on the Model Schools in just five districts which clearly displayed a lack of sense of priority on the part of the state government.
In all, the annual budget is seen more as an assumed statement of income and expenditure rather than a detailed presentation of the intentions and means of achieving the goals set forth umpteenth times by the present government. A more detailed presentation of the priority, objective and direction is needed to make sense of it all.