Union Budget 2011 : A precursor

Union Budget of 2011-12 faces many challenges. There three main problems that this budget will have to tackle and mold its strategy to are

  1. Checking inflation and enhancing agricultural productivity
  2. Lifting supply-side constraints to economic growth
  3. Executing the long overdue fiscal correction.

Moreover the current political situation will not help the government in taking concrete steps for uplifting the economy. Like Mamata Banerjee, the politics of appeasement is expected to show at the union budget.

In the politics of appeasement, there is going to greater allocation to Rural India. The FMCG sector appears favourably positioned to gain from the coming Union Budget.

Fiscal deficit – poor quality of fiscal consolidation in FY12 will follow owing to the political scenario.

The congress led coalition has seen a dip in its popularity and it will try to boost its reputation by appeasing the masses. It is all set to take the populist card, just like Mamata Banerjee in the Railway Budget 2011.

Read More on Railway Budget.

Rail Budget 2011 : Economic Focus with Human Face

Railway Budget 2011- Causes for Indian Rail financial crisis

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One Response to Union Budget 2011 : A precursor

  1. plese muse ya com join karna ka idea btiya.

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