There are signs indicating that the budget for increased spending on health, education, Mid-day meal, the use of state guarantee schemes and other emergency aid for the common people. This is a continuation of the policy over the past 50 years. He was the municipal development and the cooperative movement in the sixties, garibi hatao in the seventies and human development in the eighties. But the man in the situation has not changed much. This is because the Government is temperamentally proximity of the rich. Route Jawahar Rozgar Yojana place before sarpanch home. The house under Indira AWAS Yojana is built for his brother.

Health care medicines meant for primary health centre are sold on the black market. Thus, Rajiv Gandhi had said that only 15 paise out of a rupee sent from New Delhi reached the addressee. IMF, the first deputy director Anne Krueger warned, “The Indian government is a wide variety of subsidies for the poor, benefits non-poor, as many groups. These subsidies should be reviewed because they seek only to the growing budget deficit. ” There is no pressure inside the system, this would be money to versickern on small people. The government links, west Bengal, it has succeeded in building a pressure group of the Communist Party at the grassroots level. The failure of these systems is almost certain, in the absence of a portion of these frameworks. We need better opportunities to achieve the common man. The root of the problem lies in the nature of the market. We must make the free market, so that Indian companies to reach out globally, effectiveness and India in the world, No. 1 economic power. But the market follows the diktat of purchasing power is concentrated among the rich. There is no place for the common voice of men on the market. There is thus a contradiction between the two objectives that we have before us. The government wants uPA manage this contradiction by an increase in corporate and income tax such as the introduction of a process of education in the last budget. This approach is probably cancelled because only 15 paise of every rupee spent will probably reach the poor. In addition, taxes as the education process of our businesses are not competitive in the global marketplace. Sub-contracting provision of NGOs, the rate of delivery of 15 to 25 or even 50 paise, but companies still need to impose not made the world more competitive. How should we less interference in the market and, at the same time, support for sharing the man? Wild Horse Finance Minister should think otherwise. The market is like a wild horse. This may be the driver to his destination, if they can prove the reins. The Minister of Finance should be a tax system for enterprises to create jobs. It can do so by a reduction in tax rates of consumption labour intensive units. At present, our businesspeople prefer to avoid automatic that the problems of labour laws and trade union militancy. The intensity of the use of Indian industry is declining. The Minister of Finance could, for example, that a device pay wages and salaries of more than 40 per cent of its turnover will be entitled to 25 per cent reduction of excise duty. The businessman is offset, where the problems of employment of large numbers. In addition, lower rates of duty that can be imposed on sectors such as handlooms labour, agro-processing and garment manufacturing. On the reverse, capital-intensive industries, in a relationship of eating can be heavily taxed. The growth of bottles Soft-Drink industry has resulted in the closure of the street corner fruit juice manufacturers and providers of tenders coconuts. Textiles handlooms pressure are similar to those of large companies in the textile and discard the work of Weber. These offers should be heavily taxed to eat, so that work units can survive intense. The government in both policy areas. Establishment of an educational process leads to greater burden of taxation and entrepreneurs zerfrisst able to invest, vis-a-vis its foreign competitors. The introduction of higher excise duties on alcoholic beverages and major textile mills increased production costs and has the same effect. Both taxes have a negative impact on global competitiveness. But the introduction of an increase in excise is preferable, because this range to avoid leaks, tax and spend approach. Employment is generated, net of taxes to be collected and without the participation of sarpanch and the village-level workers. A similar policy must be implemented in regard to small industries. The Reserve Bank of India has a policy of 40 per cent of the credit should go to priority sectors. But the share of priority sectors, despite the continued decline in broadening the definition of this sector. The reason is that bank managers, earn profits from its branch. The Bank has contributed to huge administrative burden in managing large numbers of small accounts. There is a contradiction between two objectives, there is the director of the institution. On the one hand, he must show to win, on the other hand, he worked in the service sector priorities. Grand loans finance ministers have for the industry profitability on loans to SSIs. A tax of one per cent should be imposed on large loan and the amount spent on cross-subsidies to its branches, the SSIs credits to cover rising administrative costs. The branch loan on SSIs obtain grants and benefits. Such cross-subsidisation of taxing large SSIs is ready not to be confused with the fiscal subsidies such as life and fertilizers, general tax revenue. Like the government high rates of air conditioning to Class II, Class subsidize, it should tax similar to large borrowers and to subsidize small borrowers, without an increase in the average cost of credit in the economy . The high level of taxes on large units to do so, they are no longer competitive in the global economy. The India can not approve the machine flooded with fabric from abroad to the closure of the two Handwebstühlen and the local textile mill. This problem should be solved by a parallel increase in import duties. So, both imported and manufactured mechanically national substance is expensive in the domestic market and hence the handgewebten to survive. Consumers should be asked to bear the high cost of this substance as a taxpayer, for the generation of employment. Indeed, the tax burden as a whole must not go down when the government closed the welfare programs are in tandem and reduce taxes in proportion. The challenge is the budget is intended to ensure common prosperity of mankind, without resorting to government machinery. The market must be in the right direction, incentives for employment generation. The author is a former professor of economics, Indian Institute of Management, Bangalore.