Budget speculations have begun. Those of us familiar with the budget-making process know that the expenditure budget would have been frozen. The revenue budget would be getting fine-tuned, while the overall macro and policy framework has a while to go.

This would be the last substantive budget of the UPA Government. While economic buoyancy continues and no one expects path-breaking measures, there are obvious issues that must be addressed.

First and foremost, the need to withstand pressures for new, populist schemes. Those already committed constitute fiscal and implementational strains. Adding to the woes of implementing agencies would be wasteful. Not surprisingly, audit reports on some flagship schemes like NREGP have been less than favourable, suggesting inadequate preparatory work. Blaming state governments for poor governance does not help.

District officials, the same agency who are already engaged in law and order and numerous development schemes, have neither the time nor capability to undertake added commitments. Innovative alternative agencies are not easy to secure; we are best served to consolidate and optimise outcomes from ongoing projects.

Second, this budget would be presented in the backdrop of the National Development Council’s recent adoption of the XIth Five Year Plan. It will also be the budget for the second year of the plan. Clearly, the priorities contained in the plan need to be suitably reflected. This goes beyond provisioning for a hefty increase in the Gross Budgetary Support and settling inter-sectoral outlay priorities. It also entails a major increase for education, going up from 7.6 per cent of central GBS to 19 per cent. The implementation of the agriculture plan approved by the special NDC based on regional and state-specific characteristics including restructuring of the accelerated irrigation benefit programme and making National Rainfed Authority, the National Food Security Mission and the Rashtriya Krishi Vikas Yojana will be a priority.

... contd.