Expectation from budget 2010-11

For the last couple of weeks, we all are talking about the union budget 2010-11. Points of discussions are whether the stimulus would be with drawn or not, what about the double digit economy growth and so on and so forth. But I think there are certain points which are needs to be discussed and debated by all of us.

First and foremost the percentage of total expenditure on ‘Education and Health care’ needs immediate increment. Out of the eight millennium goals adopted by UN four goals are related to education and health. Mind you that South Asia with sub Saharan African countries is the major hurdles in achieving these goals by 2015. India, in particular is the home of so many millionaires and the increase in the number of these millionaires is significant in the last decade, but contrary to this we have not been able to reduce the people living below poverty line. The earlier target of achieving universal primary education (in India) by 2010 and then by 2013 seems to be quite futuristic.

Same way the Infant Mortality Rate and Maternal Mortality Rate is quite high in India (even more than Sri Lanka, Bangladesh etc.). So unless and until government increase the real expenditure and ensure its proper implementation at ground level (both in education and health care), irrespective of the fact that how much stimulus you give to industry, we will find it very difficult to push people BPL to the upper part of pyramid.

Second issue is the contribution of Agriculture in GDP. None of us would argue that at least 60-65% of India’s population is dependent (direct or indirect) on Agriculture, but the contribution of agriculture in India’s GDP is less than 20%. How to ensure this increase in contribution to GDP by agriculture sector??

Third point, which is suggested by many entrepreneurs, is that government should encourage social entrepreneurship. Tax rebate, providing loan at cheaper rates could be some of the options to encourage our future SEs. As the financial accounts of these ventures do not sound interesting to our venture capitalists, they generally struggle thorough out there life or remain dependent on outside funds / donations. Special attention by government to these social enterprises might not give good financial returns but there social return would definitely help us to move some inch closer to remove poverty, hunger, illiteracy etc.