I am thinking again and again, what is happening with Indian Economics? The budget tabled recently seem to be more concerning.
I, like most other economists think that the states should get justifiable share in economy of the nation. When I was speaking this to one of my friend years back (when Mr. Manmohan singh was in power) – He said, Center never understood the pain points of state governments. But I never thought even after a man, who took oath as chief minister for three times for one of the developed state would act similar like Mr. Singh.
CESS, which is considered to be anti-state, was introduced by former Finance Minister of the nation, Mr. P Chidambaram. But Mr. Jaitley seem to be obedient student of Mr. Chidambaram.
This government seem to hurt the economy of states more than what the last government did. I am still unsure, why we are getting more and more Unitary than Federal? Mr. Modi was chief Minister of a developed state. He know the flaws of the system. He is aware of the issues the state face. The Railway budget hurt states – Now, the General Budget.
And another big issue, I felt was Tax on Withdrawl of PF. When Mr. Pranab Mukherjee reduced the interest on PF, My friends called it as anti-employee move. I was in the same camp. Now, this is super anti-employee move. Few are saying – this budget will help farmers and the weaker section of the society. My greetings for it.
But I am suspecting the budget. We miserably failed to achieve the target of last financial budget as same as Railway budget investment plan. We changed the calculations of GDP and others to show growth.
Congress was handling the economy bad. BJP is handling it worst. More state funds are good for federal structure.