The newly-elected UPA government is searching for the next big social sector idea for its second innings
After the success of the National Rural Employement Guarantee Act (NREGA) and Bharat Nirman at the hustings, the newly-elected UPA government is searching for the next big social sector idea for its second innings.
As preparations continue for the next budget to be presented on July 2, sources in the government said it will be a Keynesian budget, and work is on for a new social sector programme on the lines of NREGA. “It could be something big like an urban employment guarantee programme,” a source said.
The new government has taken to heart nobel laureate Paul Krugman’s dictum about combating the economic downturn. Krugman, in a newspaper column had said that this “was not the year” to look at fiscal deficit.
Therefore, the new Budget will have huge allocations for roads, airports, ports and if PM Manmohan Singh is allowed to have his way, serious steps towards power reforms as well. “The prime minister has been very clear that the only way to combat recession is to make India an investment destination. The developed world’s fortune should be linked to ours since that is the only way to self-preservation. China has done that which is why it always factored into all of the first world’s economic plans,” said a senior government official. Therefore, despite dire forecasts over the fiscal deficit going out of control, expect a high-expenditure budget.
In the previous UPA government, allocations for the rural development ministry were second only to the defence ministry. In fact, this is probably why this ministry has become a hot favourite. “Because of the orientation of this government, this has suddenly become a very prized ministry,” said the source.
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