Indian central budget 2017-18-expenditure should be much more than budgeted

According to the Budget Estimate for 2017-18, total expenditure during 2017-18 is Rs . 21 46 735 crores which higher than the Revised Estimates for 2016-17 of Rs.20 14 407 crores only by about 6%. The inflation in a year will be about 10%. This means that in real terms the expenditure next year will be less than the current year. This will result in contraction of the economy instead of growth. If the rains are favourable and agriculture registers higher production and the private sector does well, the contraction of the economy can be avoided and even growth can be registered. For this the government should be proactive, reaching out to private sector and offer incentives. The regulatory role of the government should be reduced and developmental role should be concentrated upon. For example in the matter of pollution control, the authorities should not impose elaborate regulations on industries and punish those who violate the regulations but should come forward to establish pollution treatment plants and charge the industries for the same as service charges on a monthly basis just like electricity, water etc. charges. This could be done easily if the factory comes up in a cluster. If the industry is polluting one, government should encourage clusters so that it is cheaper to treat the pollutants.


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