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Analysis Financial Budget India (2009)

Preparing Union Budget is one such act of government which attract attention of all people of India because this budget defines most of financial matters of people. Most of people living in India come under average or low earning group with strong base of middle class. Around 80% of people in India come under the category of ordinary people leaving behind 20% rich or extremely rich people. Also visit-Watch Live Union Railway Budget India 2011-12

This majority of people also have major expectations from Indian government and same reflection, we are seeing in Union Budget 2009 presented today by financial minister. Today’s budget can be clearly defined as a popular budget focused on masses or as perceived by us. In this budget, financial minister has proposed some reliefs to common people by increasing tax exemption limit slightly, providing relief to farmers and by increasing spending on public infrastructure.

Budget has provided numbers of soaps to poor people and farmers because UPA lead government knows that these people have put them in to power. However, problem with this budget is that it does not looks to be a balanced budget as government has increased its spending by 36% from last year to give relief to ailing economy. With these popular measures and high borrowing, fiscal deficit has increased to all time high level of 10% of GDP which is a bad sign with long term prospective.

India looks to joining other western countries like US which have high fiscal deficits of more than 10%. Overall, this year budgets fail in providing all necessary means to put India on strong and balanced growth. Though, present budget by UPA lead government can be termed as popular budget, however, it can create lot of financial mess in long term if things went wrong as already going. It s very important for government to put some balance between its expenditure and avoid over spending, however, India still looks to be burdened by past track record of popular and socialistic budgets without worrying about future financial problems.

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