Recently announced budget for FY 2013-14 has some highs and lows. Few sectors which will benefit from budget proposal due to increased allocation and more outlay of funds are: oil and gas,road builders,education sector,rural sector and infrastructure sector.
Oil companies will benefit as the budget proposes to change from profit-sharing to revenue-sharing policies in oil and gas sector. Another agenda is high allocation for building roads and total of 3000 kms of road projects in next fiscal year. The 12th Plan projects an investment of USD 1 trillion or Rs 55,00,000 crore in infrastructure and continues support to JNNURM scheme. Education sector is allocated Rs 65,867 crore,an increase of 17 percent over previous year allocation and rural sector given 29.4 percent increase in the governments plan expenditure for FY14 over FY13s revised estimates.
However,more funds have been allocated to various sectors but along with money what needs to be taken care is right implementation of planned schemes and projects with efficient expenditure,a thing still difficult to achieve in Indian context. High implementation risk with uncertainties in economy and upcoming election year can be a major concern for FY 2013-14.
Hence,higher allocation of money is favourable to economy but futile if not accompanied by year-long dedicated efforts towards rightful implementation of schemes and completion of planned projects.
(This entry is part of our FE MASTERMIND contest. The views expressed in this article are personal and not that of the newspaper.)