Any attempt to analyze GoI’s annual budget is a challenging endeavor due to tapestry of flavours, most of which are ideologically inclined and thus attracts multitude of appreciation and flak simultaneously. Here I shall restrict myself mainly to the points in the budget 2010 pertaining to social and financial inclusion of poor.
“Vision continuity”
The budget 2010 maintains continuity of the Government of India’s (GoI) vision of “prudential reforms” oriented economic growth with social equity. It reinforces GoI’s hybrid approach towards economic growth and social development along with a perceptible mix of welfare economics and neo liberal proclivity. This is in addition to the policy support for good governance initiatives like UIDAI and Technology advisory group for unique projects (TAGUP).
“Flavours of welfare state and neoliberal proclivity”
The USP of budget is a clear cut limelight on aam aadmi, mazdoor and kisan by bringing socio-economic convergences like MGNREGA and RSBY , setting up of National social security fund(NSSF), and extension of swavalambhan initiative under New pension scheme(NPS) concomitant to bharat nirman and other infrastructure development initiatives. The four pronged strategy for krishi aur kissan (agriculture) which has once again brought a special focus on increasing agricultural credit and interest subversion of 2 per cent a is continuity of past legacy of UPA . What is remarkably different this time is special focus on infrastructure, which could be a public policy response to sporadic food inflation cycles. All this arrows towards the flavours of welfare state.
On the other hand three major announcements in the budget which went off relatively twilight are Financial sector legislative reforms, GoI intent to open food retail sector and shift towards nutrient based fertilizer policy for containment of subsidy in the long term. These announcements are in a way pointers to the colours of “reforms”.
“Financial Inclusion”
Anticipated area for the actors of financial inclusion from this budget was support to financial inclusion initiatives and new emerging models which the Finance Minister has not left completely untouched. Enhancements to the corpus of Financial inclusion fund and Financial inclusion technology fund along with Government’s intention to take banking facilities to all habitations with 2000 plus population by 2012 by use of appropriate technologies and business correspondent model is a welcome announcement.
“Ye Dil Maange More”
“More is better than less”. Being a voracious consumer of government policies and programmes I feel more could have been incorporated in the budget , at least the two specific points, one related to livelihoods and other to microfinance. Incentives for actors of livelihood promotion in demographically and socially challenging terrains and special fund for impetus to JLG based microfinance activities to spur local entrepreneurship in strife torn states like Jammu and Kashmir NE states would have been a cheery at the top of sarkari cake.
I welcome your comments on this piece.
***The post was appeared for the first time on FINO blog.
