Today is the day that is going to decide the future of this country for the next financial year as the Finance minister walks into the parliament to officially announce the budget proposals.
The most perplexed Minister for the day must be the Union Finance Minister Pranab Mukherjee. The Minister must go through the toughest ordeal for the day by presenting his annual proposals in Budget 2012. It is almost a Damocles sword hanging on the Chair for the day. The FM is sure to be a perplexed man at the moment, because there are a lot of things to be considered while preparing the budget for the next financial year. Most factors that influenced the last financial year will take a toll on the present proposals.
Most importantly Congress loosing charisma in home lands like Uttar Pradesh, so the FM has to concentrate on more populous sops to garner below Poverty line support, at the same time must concentrate on the middle income group who are facing the heat of inflation of essential commodities. FM needs a Midas touch on these issues.
As these become fundamentals, on the other hand the country is surrounded by neighbors who are ready to enjoy the pound of the Indian flesh. Hence Defense expenditure is the most important issue. Amidst all this, another vital point is the UPA government has got its internal tussle going on at its peak, since independence. That only means whatever the FM proposes might not get through the parliament.
Under the given situation, how is the FM going to garner money for his schemes, is a million dollar question, which only the FM can answer. If he goes for the Tax hikes, profitability will almost depreciate. This factor will not garner investments from outside. Already the FDI proposal had lukewarm response from the various state governments and so delayed the proposals. As per the fiscal deficit the RBI said that it plans to wait for the FM’s announcement before giving node to the liquidity proposal.
Especially after his colleague the Union Minister of Railways, Dinesh Trivedi presentation of his annual budget this week, FM becomes more precarious. Unfortunately the Railway man had a tough going and evoked much criticism from parties for the passenger fare hike. FM now has to do a tight rope walk and sway his magic wand like the former FM and now the Prime Minister of India Dr Manmohan Singh. Probably those were the last sessions that saw prosperity and immediate gains. Let us all join and wish the FM: All the very best. (With inputs from internet- AarKay)
