Union Budget 2009 - A taxpayer's analysis

When Indian Finance Minister Mr. Pranab Mukherjee quoted Mahatma Gandhi in his budget speech, “Democracy is the art and science of mobilizing the entire physical, economic and spiritual resources of various sections of the people in the service of the common good of all.”, like everybody listening to him I was also able to realize that this is a "populist budget". But unlike financial analysts, who have an reservation with the term "populist budget", I tend to like the term and often when I think deeply I tend to favour the notion. The key thing I find is the challenges that have been enlisted:
- to lead economy to high GDP growth rate of 9 per cent per annum at the earliest
- to deepen and broaden the agenda for inclusive development
- to improve delivery mechanisms of the government.
If these are honestly crafted and seriously thought challenges, I would certainly like the budget presented thereafter for India Inc. If Mr. FM can work on any of these seriously, I would not mind running my car on a road with potholes as big as my tyres for one more year despite having paid full road tax.
I am not sure why financial analysts see the populist budget as anti-development. Here I see a lot of planned development. If we can work on "agenda for inclusive development", it means more wealthy people embracing our economy, which means a bigger wealthy society, leading to more business. There is no issue with schemes like NREGS, Bharat Nirman, and PMAGY as these are directed towards the people who contribute to our economy in large numbers. This will help them improve their lives, which in turn contribute to our economy. Correct me if I am wrong in interpreting the term.
Right now the biggest hinderance on the road to development is the delivery system of the government, rather than the agenda for inclusive development and if this can be fixed. I see that the plans will be executed as per the expectations. I really dont see any issue, if I pay road tax for a roads to be fixed, and government delivery mechanism is correct, I will get a good road. So any effort to make government more accountable should be welcome. It may seem to be costing in short term, but in long term its repaying us. Spending money on UIDAI and National Security is good for economy.
On budget tax proposals, any step to increase my take home is welcome. Increasing the exemption limit is good excercise for taxpayers, but it should not loose government significant revenue. Removal of surchange on personal tax is also welcome as it would make the fat cheque drawers look ordinary citizens and not the extraordinate taxpayers. Abolishment of FBT makes me happy for people around me, who can now expect their employers to shower some freak 'allowances' like office phone etc. NPS being tax free is another allowance from FM for us.