On the road to Liberty

My article titled "Union Budget 1999-2000: Some unanswered questions" was published in the newsletter of the Liberty Institute in May 1999. The 1999-2000 budget has tried not to tread too hard on any toes. In view of the rollbacks that had to be undertaken last year, this was perhaps inevitable. But by the same token, the budget has left many questions unanswered. Rural development The budget has outlined many measures. But it has failed to deal with two basic questions. First, as a former Prime Minister had noted only 15% of all developmental funds actually reach the target. Merely allocating more funds is not an answer to this structural problem. Secondly, the fundamental cause for this is the abject rural productivity. Rural India continues to support 60-70% of the population while the contribution of agriculture to GDP has fallen from over 70% in 1950 to about half that level today. The lesson to be drawn is that the fundamental way to eliminate poverty in the countrysid...