Budget and Fiscal Policy- 2019

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The Budget was first presented by James Wilson on 18th February, 1869 who was the Finance Minister of the India Council that advised the Indian Viceroy. The word Budget was derived from Mid-English word " Bougette" meaning a leather Bag.Today bag is much larger and role of Government evolved significantly.
Present position -
The Budget in India is now about two weeks' away from its presentation to the Parliament. All among the discussions at different media platforms, it seems to be a better time to take note of the following measures which will strengthen the path for growth of Indian economy.
The issues are -
1) Govt. should introduce a process of cleaning up of arrears/commitments made to Business, Trade, Industry, employees like GST refunds, Farmers' commitments, Pending pension matters etc. effecting large number of population and to introduce a scheme to regularly monitor the execution of commitments in time. This will boost the confidence of public at large.
2) Taxes and Fiscal Policy - Tax increases reduces demand for Goods and Services due to lower disposable income in the hands of consumers. It effects production, jobs creation, and allied functions. The state of economy needs more taxpayers rather than higher taxes. In fiscal policy, Govt. can influence the behavior of all players in the economy.
3) Review of Industrial policy - To ease setting up of more industrial units with a condition to earn a fixed amount of foreign exchange per unit from exports depending upon its size and volume of production as also employment to assigned workforce to manage exports. Many European countries followed this practice for their growth. Shall augment Foreign exchange sources. 
4) Public Sector growth, policy should be to re-invest the earnings by this sector in its own growth, diversify and shift from Urban areas to Rural sectors. This will reduce traffic and pollution levels in the city's growth and transform many villages into Smart cities with better living and office  infrastructure and jobs creation opportunities. Public Sector growth in various European countries have proved to be a strong source to strengthen their economy.
5)   Agriculture and Irrigation - Creation of better infrastructure e.g. Roads, Power and Water supply, making availability of cheaper and agriculture inputs, housing needs for shifting PSUs to rural areas will solve problems (mentioned in Para 4 above).
6) Managing Natural disasters like Floods where large sum is spent for rehabilitation of effected population by making bends,curves in water flows saving villages from disasters and use of water for irrigation purposes. 
7) Health, Education, Skills development - Better infrastructure will give a boost to economy by availing services of Doctors, Technocrats and the support services thereof. Conducive working environment shall prove to be barrier to Brain Drain and boost to Indian population.

In time action on these issues shall give a bonding effect on the Public for the Government.

This Budget, being last in the current Govt.'s rule can create good impact in gaining more Public confidence as also to give a good start for the next. 

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