Politics And Economics In Indian Reference

Economics v/s Politics
The dust seems to be settling down after two weeks after the Indian Union Budget for 2015-16 was presented in Parliament. The uproar of reactions and analysis from the experts is coming to an end although some states and organizations are still criticizing the budget allocations as insufficient in particular sectors. Whatever the reactions, there is no doubt that the budget is well balanced and provides a right direction to Indian economy which has already started picking the pace.

The Basic Lesson of Economics
According to rules of economics the basics tell us that there is nothing in as much sufficiency that could satisfy everyone or fulfill everyone’s demand. In fact the first rule of economics says scarcity is the root cause of poverty and this budget is trying to solve the problem of scarcity but our learned critics and leaders of opposition are no looking at this budget with that point of view. That is natural as the rules of politics are different that says ‘avoid the rules of economics if you want to be successful in opposition’. The parties in opposition are doing the same what the parties in power were doing while they themselves were in opposition.

The options
Looking back, our finance minister had certain options to take advantage of the situation like- A- Development v/s Inflation-  A rationalize fund allocation to railway and surface transportation B- A proper study of subsidies especially in the petroleum and fertilizer sectorsC- To utilize the favorable international atmosphere especially the reduced prices of crude that has come down substantially in last few months.D- The important most option is the decentralization or transfer of economical powers to states as per the suggestions according to 14th finance commission report. The truth is state governments take the rights given by center as rewards and not as their rightful share. 

It is not fair to say that this budget has reduced funds for social obligations but the knowledgeable sources agree that this budget has accepted the first lesson of economics as well the first lesson of politics at the same time. In fact I am hopeful the budget will solve many problems we have been facing for decades. 

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Keywords :
Indian. Budget , Economics , Politics , Social , States , Union , Poverty


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