It was observed lately and even commented by eminent leaders of the country that a lot of fund was being channelized for financing subsidies in the guise of equities. However, the purpose for which the fund is being routed (subsidies), is not being met. The government has planned to take up the issue of subsidy in budget 2008 to discuss about the subsidies and related matter.
Issue of subsidy in budget 2008 would also take up matters related to the steps that ought to be taken with regard to subsidies pertaining to petroleum, food and fertilizers. The Indian government has decided to spend approximately Rs.1,00,000 crore on the above three, namely food, fertilizers and petroleum. Issue of subsidy in budget 2008 would also discuss matters related to the sources of livelihood. The Government feels that agriculture could not accommodate two thirds of the Indian population and serve as the sole food provider for such a large population.
It was felt that new methods related to agricultural production ought to be worked out so that there is an increase in the agricultural productivity in the country.
Talking about the employment opportunities, the Prime Minister stated that new policies would be implemented, which would create job opportunities in the non agricultural sector. As such the non agricultural sector should also be given focus. New ways of improving the non farming segment of the economy has to be worked out. What was needed presently was a manufacturing sector, which was labor intensive. He went on to say that India needs to opt for a “middle path”, which would take into account the prevailing environment in the market and also take into consideration, policies related to equities.
With regard to the issue of subsidy in budget 2008, it was decided that the right balance ought to be maintained pertaining to solutions worked out for the rural people as well as for the urban residents. Imbalances between urban as well as rural issues occur due to unequal provisions extended to the two sects of people.
Energy security is another issue that will be taken up by the government in budget 2008. The Prime Minister stressed the need to adopt measures, which could be sustained environmentally.
He assured that by the judicious implementation of the 11th Five Year Plan, the country would be able to surge ahead and be at par with other East Asian as well as other South Eastern nations of the world.