The Union Budget of India is also termed as the Annual Financial Statement according to Article 112 of the Constitution of India. It is the Annual Budget of the Republic of India. The budget has to be passed by the Parliament before it can come into existence on April 1, which marks the beginning of the financial year in India.
India Budget Expectations 2011: An Overview
The budget results for 2011 are eagerly anticipated for different reasons. In the financial year 2010-11, economic growth was noticed in different sectors and a number of initiatives were proposed in the Union Budget of India.
India Budget Expectations for 2011 are quite high. Unlike the situation that prevailed years back, when the national economy was still undergoing an economic depression generated by the global economic meltdown, there is currently a feeling of confidence since Indian economy has quickly come back to its growth track.
In 2011, expectations are big that stress will be given on initiating measures to control price rises, cut down fiscal deficit, and control the inflation rate. Some of the India Budget Expectations 2011 are given below:
- Tidying up the public distribution system (PDS) and getting rid of outflows
Access to fundamental or essential requirements such as education, health, food, infrastructure, and security should increase to accomplish all-inclusive development. Development of skills to ensure these is essential. Measures taken such as creation of National Skill Development Co-ordination Board, Skill Development Mission, and NREGA (National Rural Employment Guarantee Act) are commendable. The requirement is to guarantee the effective implementation of these plans. Social welfare should always be the priority.
- Stress on infrastructure growth
A suitable, legitimate, organizational, and authoritative model should be introduced for promoting public-private joint ventures and influx of Foreign Direct Investment (FDI) in the domain of infrastructure. The target should be to step up the Gross Domestic Product (GDP).
- Food security and agricultural reforms
For ensuring economic growth, it is necessary that agriculture sector in India grows at a quicker pace. Many people in India are still suffering from malnutrition or food insecurity. Keeping this in view, the Government of India has already introduced the National Food Security Mission (NFSM) in 2008. This mission should be supported properly in order to eradicate malnutrition from India. This mission can be combined with flagship projects like NREGA to better the nutrition quotient of underprivileged people in village areas.
- Simplification and Rationalization of the Contemporary Tax System
The Government of India should not allow the deadlock on GST (Goods and Service Tax) to remain for an extensive period. It should finish the legal procedures by discussing with the various states and settle all unfinished matters associated to the implementation in order that the new taxation system can be introduced from April 1, 2012. It will permit current players to devise their ventures and include their cost of operation.
It has been sensed that CST (Central Sales Tax) will be terminated gradually prior to the introduction of the Goods and Service Tax. Nevertheless, Goods and Service Tax has been deferred to April 1, 2012 and a portion of the stimulus offered at the time of the financial dilemma has also been taken back. At this moment, it is highly advised that the rate of CST should be cut down to minimum 1% with effect from April 1, 2011.
Last Updated on 1/25/2011
|>> More about India Budget|