Thursday, February 26, 2015

GENTEEL RAIL BUDGET

Rail Budget 2015-16 is in line with most of Modi government policies. It is more of a vision doucument, an exercise in structural changes, than hard-core skeletal reform. It etches a rainbow of change. It tweaks something here, something there and tries to create a warmth of comfort.
The budget has laid stress on service. It has initiated creative reforms  in key areas of security, ticketing, catering, power generation practices and Make In India template.
The Rail Budget has also tried to tap into non-conventional financing sources like pension funds, multilateral banking and sponsored  rail coaches.
However, how such radical financing initiatives can mop up Rs. 8.50 lakh crore in five years is a moot point.
Rail Minister has prudently not taxed the common man by raising the passenger fare. But down the line it has hiked rail fare on commodities like grains, coal, oil, cement, coal, and LPG, This is bound to have a cascading effect on prices and will hit the aam aadmi. This is a spinoff that will hit harder than fare hikes. With declining disel prices how the government is going to defend its decision is yet to be seen. It sure will give grist to the opposition mill.
The budget should be seen in context of the last year's budget which sought to spin similar airy palaces on prosiac budget reams. How much it had attained ovet the period of one year is yet to be totalled and tallied. That the government has yet again undertaken such exercise is a question that needs an answer. It is also a measure of lack of policy chutzpah and funds crunch that underlies government's lack of bravado. Midterm is a good time to experiment with brave policies. If Modi government doesn't does it now, then it won't do it anytime in the coming years. It will always be hamstrung and at-odds. Should we take cue from this gentle and exploratory rail budget and rest assured about the theme and tenor of the general budget too ? 

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