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The budget has lowered political temperatures. It should create space for more purposive governance

The Union budget,2013-14,was not the pre-election pander that was widely expected. It did not appear to be a budget that blows the bugle for early polls. For the most part,in fact,Finance Minister P. Chidambaram placed fiscal responsibility over the temptation to please the electorate with blowout schemes. This time,arguably,prudence and greater ownership of reform have been forced upon the UPA. The government has no choice but to mind the fiscal deficit,which it is hoping to bring down to 4.8 per cent of the GDP next year. In terms of political messaging,then,the biggest takeaway from the budget may be this: against mounting odds,the government has signalled an intent to last its full term. This message may have taken the electricity out of the air,and the anticipation of early polls.

That is not to say that the UPA eschewed all political signalling in this budget. It made a pitch to sections that the Congress appears to have finally resolved to address. Creating a PSU bank for women,ostensibly to address the financial exclusion that many of them confront,as well as earmarking a special fund for their safety,is a political gesture. It is possible to argue that it is only a rote,token nod in response to the rage that was recently visible on the streets. Yet,it also signals the growing pressure on the political party to address womens concerns,separately and specially or at any rate,to be seen to be doing so. The budgetary provisions follow the Congresss Jaipur declaration,which also made a show of prioritising womens concerns. Another shift in the UPAs budget was towards foregrounding aspiration. Chidambarams budget makes an effort to dispel the idea that the Congress disdains the young,the urban and the middle class the newly demanding demographics that feel alienated by the political establishment. Schooling and skilling were stressed in the budget,as were labour reform and the need for more jobs.

Could this pragmatic budget open up space for better governance and politics,even if so belatedly in the UPAs second term? Much more needs to be proved on the economic front,in terms of following through on the budget and implementing the reforms the UPA committed to last year,aimed at restoring Indias sheen for investors,getting infrastructure and industrial projects moving and simplifying regulation. State governments and opposition parties,too,must recognise this imperative,and their cooperation will be necessary. The BJP has indicated that it will not hold up the legislative agenda. It must realise that the damage to its reputation from parliamentary obstruction would outweigh the gains from showing up the government. The government,meanwhile,needs to heed the tone set by its own business-like budget. It must stick to the spending roadmap,and provide at least one year of purposive,responsible governance.

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