The current session of the Legislative Assembly is perhaps the one session that everybody waits for, be it the common man, the businessman or the politician. What is discussed here affects them all for it is when the finance minister rises to table the budget and people learn which items are expected to turn expensive and which are expected to cheapen, it tells them whether they will have more spare money or less of it. It tells the industry captains what areas they can concentrate their investment on and it gives the opposition politician the opportunity to criticize the government. So when on Wednesday evening Chief Minister Laxmikant Parsekar presents the budget the expectations from him will be high, especially as this will be his first budget.
Having taken over the reins of the State in November last, Parsekar will be tempted to offer the people a budget that won’t hit them hard, but it is not going to be easy for him to balance the sheets. Mining operations are still to restart and the tourism industry suffered a setback with cancellations of charter flights. These are two of the State’s biggest industries, the ones that give the government exchequer its largest cash deposits. The chief minister had earlier said that if the announcement on the resumption of mining is not made, he would find it difficult to present the budget. With all the hurdles in the path of mining resumption now cleared, it is only a matter of time before operations restart. That should cheer the chief minister as he gives his budget the final touches.
Yet, it has not been a rosy economy that he inherited and has to build upon. In the past few months there have been times when salaries to government staff have been delayed due to the financial crunch so expecting sops may be asking for too much from the chief minister. He will either have to take some tough decisions or keep from making any promises. Given his style of functioning of the last few months, he is likely to stick to the latter.
Parsekar has adopted a very cautious approach since the day he took charge of the State. He has not bitten more than he can chew and so is likely to follow the same approach in the budget. This perhaps won’t be what industry will be looking for, but if Parsekar’s cautious approach can strengthen the economy and provide for an improved investment climate in the State, there will be few who will complain. What makes the economy tick is what investment industry brings into the State, not how much money the government puts into people’s pockets through its schemes. The budget has to address this by creating the right climate for investment.
The Governor’s address to the Assembly on the opening day of the session has given an indication of some of the provisions that the budget could have. Stating that the government had inherited an economy that was stressed and whose debt liabilities were high, Governor Mridula Sinha said that prudent fiscal management had ensured that the State’s progress had not suffered and that spending in the social sector had been prioritized for the benefit of the people.
While stating that the closure of mining led to a loss of 20 per cent of the GSDP, Sinha said that mining activities would be restarted soon and that the cap on annual extraction of iron ore would be revisited. That is not a new announcement, as the chief minister himself has announced this in recent weeks. The governor also said that the goods and services tax would be implemented, but the best news was that the government would be promoting investments aimed at employment creation and income generation. She also promised high quality infrastructure to the industrial sector, something that industry has been waiting for.
But in giving sops to industry, the government should not overlook the needs of the people, who also look for better infrastructure – roads that are motorable, public transport that is comfortable, power and water supply that is continuous, and of course employment opportunities. If the government can ensure all this along with not added tax burden then there is no reason why the common man won’t give the chief minister the thumbs up.
