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The Indian economy, though integrated with the global economy, has been the
least affected economy by the recent global economic downturn. It was able to post a
growth rate of 6.7% in Gross Domestic Product (GDP) during 2008-09. Its average growth
rate in GDP for the last three fiscal years (i.e., 2005-08) was about 9%. This
comparatively commendable performance was not just a seasonal trend but the fruits of
structural changes and strong basics of the economy. Hence, Goldman Sachs, the global
investment bank, in its report on Brazil, Russia, India and China (BRIC) in 2006 predicted
that India will become the second largest global economy after China when its GDP
overtakes that of G-6 countries. It predicts that India's GDP will overtake that of UK by 2015
and the US by 2042. These remarks highlight the potentiality of the Indian economy.
However, there is a huge responsibility on the newly elected United Progressive
Alliance (UPA) government at the Center to bring back the economy on the track after
its slowdown in the last fiscal year. Therefore, the
Union Budget of the second innings of UPA government presented on July 6, 2009 by the Finance
Minister, Pranab Mukherjee is under litmus test. There were lots of expectations from the public, corporate,
markets, NRIs, international community, etc., from the budget. Does this budget meet
the expectations of all the stakeholders? Against this background, this paper makes an
attempt to present the highlights of the Union Budget, 2009-10 followed by the analysis
of their implications.
Presentation of a statement of estimated receipts and expenditure of the Government
of India before the Parliament is a constitutional obligation (Article 112 of the
Constitution of India). Further, the budget is regarded as a roadmap which directs the activities
of the government during the ensuing financial year. It reflects the policies and
programs which the government proposes to take up for the benefit of the country and its
citizens. An important and a very difficult aspect of budget preparation is the mobilization
of necessary funds and the judicious allocation of these scarce resources among
the competing ends is a herculean task. This is a very difficult task, more particularly
in the present economic environment (i.e., during the period of crucial global
economic environment). Therefore, it is deemed as the most important event and document of
the government as it clearly presents the policies of the government during its
tenure. While concluding his introductory speech before the presentation of the Finance
Bill 2009, Pranab Mukherjee quotes the statement of Mahatma Gandhi that reads
as: "Democracy is the art and science of mobilizing the entire physical, economic and
spiritual resources of various sections of the people in the service of the common good of all."
This statement can be construed as the government's commitment to inclusive growth. |
