With the rapid development of Indian economy and its impeccable effects both in domestic as well in international economic field, the annual union budget of India has not only assumed the most important event on national perspective but also in international perspective since India is now fifth largest economy in the world. Since the union budget has widest impact in every sectors of domestic as well as on considerable sectors in overseas, therefore deliberations and debates before and after union budgets are manifolds from finance, health, employment, agriculture to taxation etc. My present article in the well spirit of brevity will focus on fewer issues before budget which appear to me fit for being adumbrated..
The first issue pricking my mind is the generation of sufficient job opportunity in coming years. The acute gradual manifestation of chronic unemployment problem in India is perhaps the most challenging issue before our economy. For last few years it is the buzz words among experts that our economic growth despite being very impressive is unable to generate desired job opportunities in national level, thus even constrained the World Bank to issue repeated warning to us that India is sitting on time bomb of unemployment five years back. It is undeniable fact the persistence of present government to cope with this dangerous problem is very much commendable but government sincere effort is not showing desired effect on employment front. Question is why? In my humble opinion Indian job market in last 20 years are assuming a strange pattern. The widening difference on urban and rural employment field is assuming the deadly proposition. The huge skill gap in rural employment seekers is the highest headache of sate. The rural job market is absolutely depended upon three segments as such unskilled jobs in big or medium or small scale industries, migratory jobs in different corners of nation and government jobs. It is known fact that legion of rural educated segment is nearly depended upon government jobs and rapid shrinkage of government job has cascading negative effect upon rural population. The recent incident of Agniveers protest and massive migration effort of rural educated particularly in north India to overseas are just a tips of an ice burg. On the other hand rapid automation in industries and construction sector is resulting on considerable reducing of job opportunities for unskilled labourers who are mostly from rural background. Automation and rapid development of AI and digitalization is eating up the job opportunities of rural people. On the other hand urban employment scenario is not looking rosy. Although the burgeoning IT sector is working wonders on mitigating the trauma of urban employment gap but same factor of automation and AI is equally dominating issue on employment field apart from reducing government jobs. So more or less overall causes of unemployment and its evil tentacles both are ubiquitous both in urban and rural India alike.
The second important issue of serious proposition is ailing state of agriculture sector which inspite of the back bencher behind service and manufacturing sector on employment perspective is silently embedding another time bomb and that is imminent haunt of acute food shortage in very near future. Yes, it is fact. Although at present India is slated to be food surplus country and we are now major exporter of agriculture produces in the world but three deadly factors brewing silently partly on account of government gross negligence as such rapid shrinkage of arable land due to fast urbanization, secondly general aversion among rural youths to take agriculture as a profession having lowest profit due to high inflationary affect on seeds, fertilizers, pesticides and producers being in bottom line of price determination, thirdly state and central governments gross apathy and negligence to establish sufficient cold storage chains in rural market thus resulting in high wastage of agricultural produces and worst exploitation of farmers by the middle men. Both central government and RBI being in helm of controlling chronic inflationary pressure on economy has taken ostrich like attitude on these three burning issues causing severe food inflation and consequent inflation in overall by natural corollary. India in my opinion needs no external enemy to demolish it as the both unemployment and inflation are more than suffice. The academic attitude of central bank like increasing Repo rate and ors to combat inflation are ludicrous if these ground realities are continued to be ignored.
Lastly on taxation front less we say about the functioning of government on this front better it is. Perhaps no countries in the world has such mismanaged and draconian taxation system. Just looking at our repressive indirect tax level which has touched its highest point of imposition except our last rites is as fit to be equated worst than British colonial exploitation of poor vis a vis most inefficient direct taxation system where rich and corrupts are sitting on heaven of ax evasion while genuine and honest citizens are bearing the severe burn of most draconian taxation system in the world where rate of direct tax has touched unimanigable height of 60% and along with interest and penalties as high as 90% of income.
Budget will come and go in every year like a ritual. But will it survive the umbrages of numerous time bombs it is brewing?
Author Bio
Very serious issues have been rightly and clearly brought out. Nation must attend to these issues.