The Union Budget and sustainable development

This editorial comes immediately following the presentation of the Government?s annual budget by the Finance Minister. In previous years, we have heard and read comments like ?dream budget? and ?historic budget?. Often, the dream has turned out to be a wisp of smoke. Comments this year are subdued, and even mildly critical. Perhaps, that is a good sign. In any case, the budget this year has not attempted anything dramatic or unrealistic. It probably takes into account the political constraints under which the Central Government will have to function in the immediate future and yet it does make a clear statement in favour of reforms that have been announced or indicated earlier. Some of the positive features of the budget therefore include a serious attempt at reducing subsidies in the case of petroleum products and fertilizers, movement towards creation of freer markets in agriculture, and an attempt to provide some incentives for state governments to reform the power sector. One would have expected somewhat stronger attempts to reduce government expenditure as a means to bring about a greater balance between government revenues and expenses. However, this has not been done, even though several departments have been identified earlier, by the Expenditure Commission, as holding fairly large numbers of surplus staff. While the budget becomes an important element of government policy for ensuring balanced and adequate economic growth, India today faces much bigger challenges in respect of ensuring the sustainability of growth. As yet, there is no system or mechanism whereby a sustainable growth strategy is evolved in the country and within which annual budgets could be formulated. Several other countries have attempted to set up commissions on sustainable development, which mobilize all stakeholders in an attempt to prepare a future vision of growth and development that is sustainable. We have not, as yet, attempted something similar in this country. Perhaps, the time has come for the Government of India to launch a serious exercise for defining growth strategies that are sustainable. If we do not make such an effort, then the loss of clean air, water, forests, healthy soil, and biodiversity will continue unabated and only reduce the overall welfare of Indian society, even while in statistical terms we may register high rates of growth.