The Budget is quite good, despite the slowdown in economy and the Gujarat earthquake. The finance minister has made every effort to continue the economic reform process. He has not tampered with long-term fiscal policy. At the same time, he has tried to address problems facing the economy, in the agriculture, infrastructure and public sectors. The basic idea is downsizing the government and there are many estimates of surplus staff in government departments and public enterprises.
Surplus staff is partly due to our philosophy of employment generation regardless of cost.
In a market driven economy, efficiency will also be applied to the public sector. The Pay Commission also recommended downsizing. For large public concerns, restructuring is needed to cope with global competition and improved efficiency. Details are yet to be worked out. There is nothing directly to help the poor.