BUDGET 2010 AND BEYOND

BUDGETING FOR YEAR 2010

We have been budgeting our Income & Expenditure since long. Nowhere could we strike a balance and the result was- debt in many ways. Taking loan from the World Bank or any other agency will not cure our inborn disease of “Over spending”. The saying “ Cut the cloth according to the size is important in our context.

A clear picture of what we intend to do from the resources we have, is an essential component in our forecast in the Budgeting Process. The Projected Income from different sources will only be a speculation which may or may not materialize in actual practice. But our projected expenses must be clear and calculated with utmost surveillance. The Income & Expenses must match each other with a view to keep the expenditure low to achieve Profit for THE RAINY DAYS. The timely completion of the projects will always lower the cost of construction. The targeted projects are delayed due to indifferent attitude of the executives & and the corrupt practices all around.

I have a few suggestions to make in this matter of balancing the Income & Expenses, whether at Government level or at private individual level in managing the house hold expenditure etc.

wasteful expenditure in any manner, in the areas of:-

Living habits-dressing

Living space-House & Flats

Food habits-

Luxury items

Time management

If all the above items of daily requirements are kept in control and precisely checked we may even save to an extent of 50% of the present expenditure we incur in our day to day life. Think about the FANCY items and other artistic items we possess which in other words will not have any productive value except the momentary pleasure of receiving from VIPs or from any other Institutions. Once the purchasing power is increased naturally we are tempted to purchase items, which on second thought we may hesitate.

To have an effective control over the money transaction, I would go to that extent of suggesting to impose ban on the use of MONEY through personal transaction between one person to another. All transaction must be through authorized Electronic media, Debiting /Crediting as the case may be through PERSONAL IDENTIFICATION CODE.

This will not only prevent corruption but also enable the authorities to find out the exact asset of each individual. That means the Taxation will be easy and the transfer of the dues from each person can be credited in the General Exchequer directly by the finance ministry.

Also the different slabs system to be abolished and a straight line formula to be adopted in the Taxing method. A flat rate of:-

Those earning up to 2 lakhs - No Tax

Those earning from 2 to 10 lakhs - 10% Tax

Those earning more than 10 lakhs - 25% Tax

The Cannons of financial Propriety must be held high in practice and the amount we spent on any PROJECT must be remunerative to an extent of 6 to 7% of the cost of project per annum. There should not be a case of desertion or closure of any project on the half way, resulting in a SINKING ASSET, which will ruin the whole finance ministry and the Country in general.