The Budget

Chiddy spoke on the budget earlier today. It looks promising. There's talk about reducing the fiscal deficit, plumping up the infrastructure and significantly increased spending on education and health for the poor (up by 31.5% and 22%, respectively, from last year). The basic response has been positive, but the BBC's Economic Analyst Paranjoy Guha Thakurta sounds anything but positive.

Much of the money spent by the government on development schemes gets diverted by corrupt officials and subsidies meant for the poor do not reach those who need these the most.

At the same time, affluent Indians living in urban areas cities flaunt lifestyles that are comparable to those of the rich in developed countries.

However, even in cities of concrete and steel that glitter on the surface, a third of the residents live in abject poverty, denied secure jobs, social security and access to basic sanitation facilities and clean drinking water.

The challenge to alleviate the lot of India's poor remains unfulfilled.

Ok, I agree there are serious problems. And I'm the first one to be skeptical. But to see that -at least on paper- the government is trying to help the poor, strengthen infrastructure and improve literacy and public health, gives me an iota (and mind you, it's just an iota nothing more) of hope. It's probably going to be dashed to the ground anyhow, but we'll see. I think the phrase du jour is "cautious optimism."