Saturday, March 5, 2011

RUNNING IN THE SAME PLACE.


              
   The  Madhya Pradesh budget  2011-12  is somewhat of a mechanical document ,  conventional , more of the same thing .Though Budgets in these days of globalised economy have a limited leverage  but if that is used imaginatively, it can prove critical.
     On the macro economic front , there are welcome steps in enhancing the  allocations to health and education in a quantum way. Likewise, there is a substantial increase for middle  term initiatives in energy and agriculture. GDP has increased and  the growth rate is higher than the national average. On the micro front though our per capita income is lower and with rising cost of living , disparity rises and  scenarios  like the farmers suicides arise.
   In  what ways could the MP  Budget  be different from the Union Budget  and those of other states? A state  budget ,esp. that of a developing state like MP cannot be evaluated on GDP and growth rate alone. Even the HDI   indicators have  to be figured in. For instance, the funds allotted  for infants under the proposed Atal Bal scheme  though welcome are  too meager .On the other hand, with  28 % increase  in revenue receipts , where was the need to borrow from market ? The plea  that other states borrow  even more does not hold since borrowing is O.K wherever there are more income opportunities.
  Also, there  is no take on governance issues -  there is no benchmarking  ,emphasis is only on outlays ,nothing  about outcomes. There  is  no mention  of  funds  lapsing - the  quarterly  allocation  too has not worked -  or  for  that matter the status of  previous  budgets’  promises. Similarly ,nothing has been done about regional  disparity; nothing specific for  SC / ST;    Furthermore , there is  precious little  in the direction of promises in manifesto viz.-1 lakh jobs a year for  youth ;  waiving  loans of farmers upto 50,000/-;  parity of state govt. employees with central  scales. The general impression that  BJP is a party  for rich businessmen / big  farmers has been reinforced   .This
budget is in keeping with the eternal weakness of BJP - lack  of  vigour & rigour ;playing to the gallery and statistical jugglery can only go so far.
  Opposition  too didn’t perform its role ,  beyond  the  TV  bytes and  one liners there has been no intelligent debate. All in all, it is more like a BahiKhaata   than a vision  statement which  a budget is supposed  to be. Conventional  approach  can get  you conventional results .There seems to be no different model for MP than other states which means  we will always  be behind others. It is like running in the same place.

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