By all accounts, Mr Chidambaram presented a credible and creditable budget. He had to achieve balance in a complex situation – between political compulsions and fiscal prudence, quest for economic growth and concern for equity, and infrastructure needs and populist impulses.

Since the 1980’s India emerged out of the relative stagnation of the ‘Hindu’ rate of growth.  In the liberalization phase starting from 1991, these robust growth rates are consolidated.  India is now the second fastest growing nation among large economies. Global comparative studies indicate that our competitive advantage may continue for the next several decades, thanks to the young demographic profile, low cost economy, and large, ambitious, skilled manpower.

The Union budget for fiscal year 2005-2006 is due in just over two weeks.  This is the period during which a lot of pressure is usually brought to bear on the Finance Minister (FM) to increase budgetary allocations for this or that panacea to transform India and eliminate mass poverty.  With greater continuity and stability in the tax regime the usual excitement about tax rates and the guessing games have been missing in recent years.  Therefore, much of the debate is about allocations, expenditure and fiscal deficits.

One year ago, in December 2003, the UN Convention against Corruption was adopted as the first global anti-corruption instrument.   As the Global Corruption Report 2004 of Transparency International (TI) points out, "It sets new standards in domestic and international law, in part by committing its signatories to enhanced cooperation and mutual legal assistance, particularly on the return of assets.  But its success requires political will and a commitment to monitor implementation".

Most economists across the world generally agree that India can grow faster if only certain impediments to prosperity are removed. India’s growth at a reasonable 6-7% per annum, and being the world’s fourth largest economy in purchasing power parity terms testify Indian entrepreneurial energies and ambition of the ordinary citizens. True, China continues its scorching pace of growth, but there is every reason to believe that we have the potential to match China's growth in the coming years.

There has been a lot of debate and commentary during the run-up to Maharashtra Assembly election and after the results, about the political fallout at the union level. But the important issue of free power has been largely neglected.

One of the challenges facing us today is providing reasonable quality healthcare to all people, irrespective of birth, caste, status and wealth. We are one of the most poorly served countries in terms of health care. And yet we have an impressive infrastructure of medical institutions.

The greatest challenge before India today is combating mass poverty and making lives of ordinary people bearable.  If dignity is denied to an Indian in 2004 AD, and people are forced to be hungry even as foodgrains are rotting in warehouses, then that is unacceptable.  If in 21st century poor Indians suffer in monsoon from torrents of rain for want of shelter over their heads, or shiver in cold, then that is a disgrace to our republic.

The new UPA government has made commitments to enhance allocations for agriculture, employment guarantee, education, health-care and many other sectors. Given the precarious condition of our public finance, a great debate is raging about the wisdom of allocations vs focusing on better delivery of services.

The outcome of the Bihar elections is stunning in its scope as well as in its nature. Once again, the illiterate, long-suffering people rose above caste and religion in search of a better future, and proved the psephologists and pundits wrong. This capacity to transcend narrow loyalties and express the collective will with calm grandeur has been the saving grace of our otherwise flawed democracy. This happened in 1971, when people were fired by hope; in 1977, when they were outraged by the fetters imposed on liberties; and several times thereafter all over the country.