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Topic : India Budget 2010
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Created by : Esha Johar, Risk Analyst, Irevna  | 02 26 2010 08:37:37 +0000
Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets)
Activity:  454 views;  last activity : 07 06 2010 20:18:09 +0000

Every year, the only people who get visibly excited by the Union Budget are the government folks and to a lesser extent the so-called wise men of industry who have never done anything else but hailed and lauded every Budget as pro-growth and progressive only so that they don’t rub the Finance Minister up the wrong way.

The disconnect between the Union Budget and the common man (because of whom this government came to power) is so severe that it merits no comment. In no other country, is there so much time spent over analysing what the Budget will be like and then when presented, what it will mean for the people. Frankly, the Union Budget is an exercise which needs to be confined only to the Finance Ministry if that.

So users, do you think the increased allocation of government spending on social sectors is reaching the poor?

 
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I would differ from you Esha. How can something (ie the budget) done principally for the aam aadmi not connect well with the predominant object of its exertions? The proposition is almost an oxymoron. The very fact that people wait for the budget, criticize it and debate it, proves that the theory of “budgetary indifference” is a myth. The aam aadmi is no more a passive, uneducated, unaware, or unconcerned person. Middle India has exploded in the last decade and comprises over 500 million highly alert and argumentative Indians. Media reach has made awareness universal and expectations exponentially heightened. People analyse, discuss and debate several issues not done even in the early 90s and the budget is certainly on top of their agenda. So, if spending won't reach them, there will be a havoc in the country.


By Rashmi Patil, Financial services  02 26 2010 09:04:53 +0000
 
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Government spending is not reaching the common man. The common man knows that when prices have to go up, they will and by and large that will be a function of governmental mismanagement and no budget will ever address that. The Union Budget and more importantly the pomp that goes with it, only excites the few who attend Parliament and those who live in Delhi and Bombay. The Union Budget today is an exercise which is irrelevant; unimpactful and pretty meaningless when it comes to the real people of India seeking real solutions for their everyday life. The Budget in many ways is like an operation successful, patient dead.


By Esha Johar, Risk Analyst, Irevna  02 26 2010 08:37:37 +0000
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A very interesting debate !! its difficult to take sides as this is a complex issue .I agree with the views of Rashmi ji and Esha ji but somewhere we are getting off the track. The budget is the most discussed/debated topic in every aam admi's home ,aam admi's office, to perhaps everywhere in connection with the Aam admi .What we need to think off is "the distribution channel " .IS it transparent enough ?? given the fact that for every new scheme for the poor ,how much is actually being implemented ?? RTI act and other sources ( media )etc ... are important tools for this but we do need more .Lot of talks happen upon the schemes and seldom do we realize that their implementation is equally important .UID project and its true implementation will add another source to pool data from . In the end,coming to the question raised in the debate ,is the govt spending reaching the poor ?? my take is yes ( NRGEA and like ) an even NO ( corruption , transparency etc,.) thank you so much for the referral
By Shaikh Mohd. Laeeq, Technical Associate R&D , ThinkLABS Technosloutions Pvt. Ltd.  | 02 27 2010 09:02:27 +0000
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I respect your decision sir but what Esha says does make up a point. Some practical measures has to be taken. We cant just keep experimenting. We have dont have much of lab rats. Our constitution must have had definitely learnt something from the history to make up an effective budget.


By Rupesh Mainkar, Asst. Manager/Manager -(Key Accounts- Business Support), RentWorks  | 02 26 2010 16:19:16 +0000
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Rashmi is right somewhat .... be positive Esha ...things are changing


By Nitin M Aras, Head/VP/GM-Tech. Support, ODTIN Food Solutions Pvt Ltd  | 02 26 2010 09:43:03 +0000
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"Of every 100 rupees government invest for social programme only 10 % reaches them", it's a fact, not only for rural India but it is true for urban India as well.

No doubt, the money allocated to social sector reaches common man, social project has seen the light of the day in congress regime, it's been initiated but it is at very slow pace. The big chunk of money goes into system, starting from minister to clerk, to person who release the payment. Thus rather increasing the budget for this kind of programme, money should be invested in implementation of the programme.


By Himanshu Jha, Head/VP/GM-Client Servicing, Crayons Advertising Limited  | 03 03 2010 14:01:08 +0000
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No it is not.

 

How can it actually reach the poor when the route it takes is through some of the corrupt portions of the system?


By RAMESH KANDADAI, Principal Consultant, ARM Consultants  | 03 01 2010 03:49:37 +0000
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Esha,

I agree in totality with you that increased allocation of Government in the social sector is not reaching to the class it is meant for. Now let's look at the cause for the same. Till now, people in the system use to put an excuse as they are not adequately paid so they are corrupt and the right of the deserving class gets compromised. But after sixth pay commission, this complain is no more valid. Now it is matter of integrity and practice if it does not happen. Only allocating will not help until there are strict measures that ensure that the benefits of these allocations reach to the class they are meant for.

           At the contrary, I have a small difference of opinion on the quoted statement with you – “The Union Budget today is an exercise which is irrelevant; unimpactful and pretty meaningless when it comes to the real people of India seeking real solutions for their everyday life.”

           Rather it is an important exercise (planning) properly done and unimpactful because of improper execution. Your concluding line says it all – OPERATION SCUCCESSFUL, PATIENT DEAD…


By Prassan Kumar Sharma, Content Writer and Domain Consultant, FREELANCER  | 02 28 2010 22:06:02 +0000
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I am Develop a systems Increased allocation...in social sector...will not help...unless the disbursement and distribution system is made efficient and effective.I like to take a oportunities to make system natwork development in all Misneries Volenteer , Societies NGOs Etc


By Tuljeet Singh Sidhu, Freelancer, Freelancer  | 02 27 2010 06:05:18 +0000
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Increased allocation...in social sector...will not help...unless the disbursement and distribution system is made efficient and effective.


By suchita Ambardekar, Director on Board, Vir Rubber Products Pvt Ltd, Vir auto enterprises Pvt Ltd  | 02 26 2010 18:34:36 +0000
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Budget is a boring and meaningless affair in India. Infact every economic activity happening in an year should be a precursor to the budget for the next year. The decision they make has no bearing on how the country is perfomring. Look at poverty we had it all the years from Independence and did any of the budget address that issue. They pay Air India 800cr to keep it flying, like robing Peter to pay Paul kind of activity. No social insrance or unemployment insurance as such. There are lots of things that can be said about the budget, but there is no point in saying anything much. This whole independence and the aftermath had been a travesty a hog wash. It was done by some Neurotics and anything coming in their scale is nothing better than nerosis.


By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 02 26 2010 18:03:39 +0000
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To some extent u r right Esha. But we just cant keep blaming the constitution. And taking the fact under consideration that we the youth who termed ourselves to be educated and a streamline of extreme curve with an pseudo expectation that we could bring paradigm shift in the financial process of these rooted corruption, are in fact an idle money which is still awaiting for a prompt credit partner to minimize our risk factor. Let things change. What better option do we have rather than making adjustments. If yes, then there's only way which seems to be a quite clear within this hurdle. Have a back up.

Nice debate. Thanks for this topic.


By Rupesh Mainkar, Asst. Manager/Manager -(Key Accounts- Business Support), RentWorks  | 02 26 2010 16:13:17 +0000
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