Budget 2014-2015: Infrastructure, Taxes and Subsidies and Social Security Programs

Government needs to improve the overall infrastructures in the country from roads to training lines to ports. Also there are numerous infrastructure projects from sectors like power generation, roads and industrial zones etc that are pending at different stages because of leniency on the part of government. Also government needs to formulate a better policy that incentivizes timely execution of infrastructure projects. For this there should be efficient land acquisition and rehabilitation policy in place.

The government should cut a clear path in the Budget for the implementation of the Goods and Services Tax (GST) as this is pending for long time and it will help taxation more smooth and justified. So central government must address to issues raised by state governments in this regards. Also as a measure to help the common man, income tax slabs need to be raised.
Subsidies and Social Security Programs
It is important that government must try to bring down the level of subsidies. There are a number of people in the government who opposes and advocates cutting and scrapping any kind of subsidies on the basis of different theories. But such decisions on more dependent on socio-economic profile of the country than any theory. When millions of people are living below poverty line in India, any such demand cannot be good for the country. Instead of cutting subsidies, it should distribute in more efficient ways. Previous government was advocate of direct cash transfer of different social security benefits such as pensions and subsidies under Right to Food Act, LPG subsidies etc so that it can plug the leakage but it has more negative aspects than positive ones. Instead it should make public distribution system more efficient and transparent. Basically government is required to focus of good quality fiscal consolidation that restructures away from wasteful and distorting subsidies.

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