1.Increase the ceiling of tax from 1.6 lacs to 2.5 lacs to increase consumption

This would leave more money in the hands of the consumer to spend and thereby increase consumption. The level of inflation has been growing at 8% to 10 % annually but the ceiling on tax exemption has not increased. This in a sense has widened the tax base which was desired by the government but has increased the tax burden of the common man. The government should take a call to leave more money in the hands of the consumer which will directly help consumption and hence increase the indirect tax exemption.

2.Abolition of CST

This has been an archaic law which needs to be repealed as it actually it acts as a hindrance to interstate trade. The government had laid out a road map to reduce CST from 2% to 1% and then to 0%. If GST is being delayed, then the government should at least make CST vat able.

3.Time bound implementation of GST

The government should now lay down a concrete plan to implement GST. There are too many complex laws with lead to more litigation and complexity for a person to carryon his trade. GST was to become effective by April 1, 2012 but this now seems a distant dream.

4.Increase spending on healthcare infrastructure

The government has been increasing it''s allocation to the Ministry of health & family welfare. However, we have seen that this allocation of 10152 crs made in the budget of 2010-11 has not made an impact on building new hospital facilities. With a growing population, this area has not been given taken seriously as our existing health care infrastructure is highly inadequate.

5.Incentive for renewable energy

As India grows, it can not solely depend on fossil fuels. The government has to make a shift in it''s policy towards developing new sources of renewable energy like solar or wind. Today with the prices of photocells being so high, the government will have to take a long term view in which it starts a facility to manufacture photocells on a large scale to reduce cost. The government may also look at giving higher incentives to industry to encourage them to use more energy from renewable sources and  thereby reducing their dependency on fossil fuels. Out of the 242 crores allocated by the government last year, 150crs were towards Hydro Power and 70 crs were towards biogas manure management. Only 22 crs were allocated to other forms of energy which was grossly inadequate.

6.Increase spending in research

India has a huge population of talent and the government has to take part with industry to encourage research in areas of pharma, biochemistry, nanotechnology and metallurgy. That is the only way that we will be able to secure our future. This is one area that the government needs focus and make world class research establishments where scientist can excess to finally benefit the people and country.

7.Excise Duty

In the year 2010-11, the world has seen a high inflation in all commodity prices. This has lead most companies to pass on this increase to the consumer and in turn has fueled the inflation the country has witnessed. One of the additional reasons for inflation was the increase in excise duty from 8% to 10%. As fuel prices are set for another round of increase this will further the inflation woes of the consumer. The government should think of ways to control the runaway inflation facing the economy. Reduction of excise duty would be a good short term measure to reduce prices and furthering consumption.

8.Infrastructure

The country needs to increase its road and rail infrastructure. The allocation in the budget of 10-11 to the Railways was 40549 crs and the budget allocation to the ministry of Road transport and Highways was 25455 crs. However we still find that the infrastructure is lacking in many areas. Our country’s development depends entirely on this one big area.  Rather than increase the allocation, the government needs to focus on this area and needs to monitor effective utilization of the budget in this area.