All about money and profit: If I were Finance Minister

If I were Finance Minister this is what I would have evaluated to bring reforms in Indian Economy. Some of the "Ideal" budget initiatives.

Discard NREGA

In 2009-10 budget, Rs 39,000 crores were allocated under this scheme. The objective of this scheme is to assure minimum wages to everyone for 100 days in a year. It is really good initiative that government has given employment to bottom of pyramid people however the work happening under this scheme does not result in any return to society/government.

Moreover it is not focussed on developing basic infrastructure, Yes in some states basic roads are constructed under this scheme but of no use.

I believe that the funds allocated to NREGA can be diverted towards departments like PWD, Forest Department, IPH, Agriculture etc. It will not only create solid infrastructure but also equivalent opportunities of employment. However we need to ensure that this money is utilized for its original objective for which we need to bring more transparency and efficiencies in these departments.

Infrastructure Sector Reforms

We all know how bad is Indian Infrastructure. We are in 21st Century and there are plenty of villages which are not connected with Roads, do not have hospitals, Schools and telephones etc. I am among one of those citizens of India who have witnessed such life and the situation today is the same. Nothing has changed for people of those villages, at least since my childhood. We talk about India among top nations in GDP growth but where is Inclusive Growth which UPA keep chanting ?

If we read Indian economy articles in India, we have a myth that we are compared with China, but fact of the matter is that we are no where as compare to China, be it Infrastructure, be it GDP, be it FDI, you compare anything and we are way behind.

This Sector need reforms in a way that more expenditure allocation is needed and of-course a commitment of Government to ensure that every Citizen has an access to basic needs.

Let FDI come to India without any apprehension

This is big dream. Our Political instability or risk of instability make lot of FDIs hesitant about Indian Economy. Over and above that our systems and compliance add more spice to it. Let this source of Investment be free and keep least possible restrictions on it. Open more sectors to FDI, we have already seen reform of many sectors after we allowed FDI. It not only creates more employment opportunities for young talent but also upgrade their skills to international level. Needless to say that it brings more efficiencies because of increased competition.

Implement GST

GST implementation will remove lot of complexity and inefficiency from current system. Moreover will help marginalizing taxes on goods and services. Transparency in any proposal create lot of confidence in people and I am sure that GST is one of those initiative which will bring more transparency over a period of time.

No matter what it takes to Finance Minister to implement this, talk to States, bring them to a consensus, GST implementation is need for rapidly growing India.

Public Private Partnership (PPP) - A way forward

We have witnessed the result of allowing private sector in past. 1991-92 was the time economic reforms in our country started. Then Finance Minister Mr Manmohan Singh presented the historic budget wherein one could call our Economy as Open Economy unlike pre 1991 era.

Private Investment in Banking Sector forced Public Sector banks like SBI and PNB to change their strategies to survive in new world wherein private sector was big rival. Telecom sector privatization enable even bottom of pyramid Citizen to afford mobile phone. Also private telecom companies provided mobiles in interior villages where BSNL till date is not able to provide land line connections.

Privatization not only made Consumer "The King" but also created immense employment opportunities. Even another benefit of Private Sector is "No Corruption".

Tax Holidays, SEZ, Export Incentives

There are so many sectors which need right taxation policies. To encourage more investment in specific geography/Industry government need to be more encouraging. Lets extend them the help they need in the beginning, benefits will flow to our Country in long run in the form of GDP growth contribution, Tax income to government (After tax holidays), Employment opportunities etc.

Export is very important part for us. It helps us create presence in the world for various products and services. Apart from this, as Exports bring foreign currency to India, it helps improve our Forex reserves.

Infrastructure sector need more focus here because of its log gestation period. Also since this sector always need huge funds to investment, government need to create more institutions/banks to lend such huge funds in shortest possible time.

Agriculture Sector Reforms

The most ignored and more integral part of our economy is Agriculture. Over decade the Agriculture sector share in GDP has shrinked. We really need to encourage this sector if India wish to right history on economic reforms. Strategically also this sector is very important to be self dependent.

The whole system and regulations need reforms. Thank God at least income from agriculture is not taxed. Also there is good amount of subsidy spent in this sector. However the big flaw in system is MSP (Minimum Support Price). The irony is that this minimum support price is too minimum, as a result farmer gets peanuts and middle men involved in trading take huge advantage of it.

Check out MSP of pulses and see the market price, I bet you, it will be an eye opener for you. So where is the money? We need to change the parameters the way we define MSPs. To be honest I have not gone through the current parameters but gap in MSP and market price clearly indicate that this need attention from experts.

When any sector is strategically so important for us, how can we allow hedging etc in such sectors. The reason for significant gap between MSP and market price is not only because of MSP parameters but also factors like hedging and speculations manipulate this in large form.

Education - The backbone of "Bharat Nirmaan"

To erase poverty from its root and channelize the young blood, Education reforms are must. If youth of India is well educated the chances are more to channelize their energies towards good else unemployment will continue to increase crime and poverty.

Millions of kids do not have access to primary education and many who get it do not get the quality education. Good teachers do not opt for Government Schools because they do not get good salaries there. I have seen many cases wherein Government School teacher gives education to his/her kids in private schools. We cant close our eyes from such burning issues. Education sector needs immediate reforms not only at primary education level but also for higher education because that is the stage which enable students to contribute to Economic growth.

There are so many other areas which need immediate attention from government to address them in a way that concept of Inclusive Growth become the reality.

Our economy is growing so rapidly that Government need to be proactive in addressing potential issues rather than reactive once the damage is done.