The current budget is no visionary budget: it’s shaped by political exigencies. The Budget once again has not put forth enough initiatives for the economic development of the common man. Perversely, it has shown thumbs down to the big expectations of aam admi. Comparing to fast accelerating inflation rate, the enhancement in basic exemption limit merely by Rs 20000 is as good as a piece of toffee to a weeping child.
The FM has tried to bring a light smile on the face of farmers by gifting them a huge bonanza in the form of relief in repayment of agricultural loans. It is a positive attempt to free farmers from the killing debt trap and to reassure rural society. Since the budget is for non-election year, no major reforms and no populist schemes were announced. In order to set a clearly defined road map for Direct Tax Code and Goods and Services Code, the Finance Minister has laid the groundwork while crafting the Budget 2012. Though life-saving drugs have been made little cheaper, compensating by increasing the rate of excise and service tax over the comforts and luxuries. Also it has tried to focus on more inclusive growth, more investment in infrastructure, giving financial support to some of the ailing sectors of the economy and some revolutionary steps of transparency to arrest black money. It is a typical seventh year budget of a stable administration indicating steady progress towards retrieval of an 8% growth curve and to curtail the deficit.
Overall, the Budget 2012 seems to be nothing but maintaining the status quo with no big bang modifications, provides some hopes to navigate through the difficult year for the ruling party.