The Indian Rail Minister Mr. Suresh Prabhu is not taking the train passenger for granted either. At the cost of allowing the stock market to take a big dive, the Modi government has in my mind rightly decided to improve the overall rail experience from a passenger point of view. Rather than increasing the number of train services or dropping fares as a populist strategy would suggest it has stuck to improving speed, safety, security, hygiene, sanitation, better - faster - more transparent ticketing, better catering on trains and at stations, better access to physically challenged and senior citizens, upgrade of technology and infrastructure and above all net impact on environment as top priority in the Railway budget 2015 presented on 26th of Feb. 2015.
I am particularly delighted that for the first time there is a concrete vision for technology upgradation and modernisation of the Railways.
Members sitting in opposition called it a "dream budget" - of course sarcastically as for them it contains a lot of imaginary concepts that can never be implemented. I guess the lack of imagination is exactly why they are sitting in opposition today. For India, the railway tracks are the blood vessels as much as the trains the blood that flow within. And, like clogged blood vessels can cause all sorts of damage internally so also is the case with the Railways. India needs to modernize this vast infrastructure for the sake of its agricultural and industrial health and hence the economy. The people of India too have taken the health of the railways for granted and the perils of the same stand out sadly in the news. Like for the railways, I wish the government would even present a budget for Air-India too either as part of a greater public transport budget or independently if it really wishes to change the way the airline functions.
In a couple of days, 28th of Feb. to be precise, the Finance Minister will disclose the first real financial budget of the Modi government. There are a lot of expectation riding on it and most of them are contradictory. A lot has been written by financial experts in terms of advice and wish lists to the FM, so I shall skip that - keeping with the adage "Never give advice - intelligent don't need it - fools will not take it". The FM has some very sage people guiding him; but, if the Government plays the peoples card - the much needed foreign resource mobilization process will suffer; and if it follows a fiscal discipline dictated by would be foreign and domestic lenders - then the people will get ticked off. Will it cheer people or reduce them to tears is something that I cannot say for certain; but going by the "track" record, I feel the stock markets in India are in for a free fall - as it will lack the populist pleasing measures that the masses are expecting. That would actually be a good decision if the central government can follow that up by going on an expenditure cut diet.
Mr. Modi has in the last few days earned more of my admiration. To start with, he has put the States in the forefront and has decided to share a higher percentage of tax collection with them. Next, he has rightly inducted Arvind Kejriwal in the NITI panel as the head of Delhi State. Next his party reached an agreement with the PDP in Kashmir on two very contentious issue - Article 370 and AFSPA. Finally, decided to move ahead with the land reform bill despite the political opposition. For many, these are all selfish acts, but for me - brave moves that will ensure the implementation of the Goods and Services Tax next year; bring in a higher degree of trust and cooperation between States and the Center (keeping politics aside); allow for a stable governance in Kashmir; and in time bring better accountability on land management. The government is clearly sending out a message that running of the Nation and running of political agendas need to put on two separate tracks. If this be the case, then can the government be brave enough to bring agricultural income under the tax ambit? It is one of the most abused tax loop holes in the Country.
It's not going to be easy for the government to push for a hard budget either, as it may just about kick off an anti Modi wave. The Common Man is fighting for his day to day survival. The inflation he has been hit with on food and essentials is close to a 100%. Keeping on moving the tax exempt slab up and up is not the best way to go in the long run as opposed to bringing in a greater number of people into the tax net. The Government will have to find a way to walk that tight rope as it cannot afford to take the bulk of India's current tax paying population - which is neither the super rich not the relatively poor - for granted. If it does, it's at its own peril.