My Take On Budget 2010-11

Its exactly 2 months after the Budget was tabled and still i am writing this post just to put my 'understanding' into perspective. I used to wonder if anyone cares to read the special edition of 'Budget' that used to come with 'Economic Times' after the D-Day. From there, today i came to a situation where i downloaded the Budget 'pdf'. The Evolution of Me :)
You can download it from here: http://www.hindu.com/nic/budgetspeech2010.pdf
Key Points:
1. Importance of harnessing economic growth in making development more inclusive. Seems UPA government's motive is very clear.
2. Talking about weaknesses in government systems and bottleneck of our public delivery mechanisms.
3. Paradigm shift - 'The role of government more as an enabler and less of a provider'. This is a 180 degree shift from the Nehru's idea of an 'omnipresent state'. To quote the exact sentence of Fin Min - "An enabling government does not try to deliver directly to citizens everything that they need. Instead it creates an enabling ethos so that individual enterprise and creativity can flourish.
4. Fiscal consolidation - Recommendation of 13th Fin. Commission to cap combined debt of Centre and States at 68% of GDP by 2014-15.
5.Tax Reforms - Simple tax system with minimum exemptions and low tax rates & Direct Tax Code by April 1, 2011. These tax exemptions have encouraged citizens in becoming 'frauds'. Glad that they will be out. The lower tax rates should increase voluntary compliance and widen the ambit.
6. PSU disinvestment to meet capital expenditure requirements of social sector schemes.
7. Nutrient Based Subsidy for fertilizers from April 1, 2010. This trims governments subsidy bill from 100K crores to 49K crores. Also i guess a good step in the direction of 'sustained development'.
8. Additional banking licenses to extend the geographic coverage and improve access.
9. Wastage of grain procured for 'buffer stocks' and PDS due to shortage of storage capacity of FCI. Grains getting rotten and spoiled is a clear sign of the failure of our PDS mechanisms. In 2003 India was storing about 60 million tonnes of grain, enough to provide a tonne of rice or wheat to every single family living below poverty line. Even after this people suffering from hunger is inexplicable.
 To Be Contd..