Although the budget presented by Finance Minister Nirmala Sitharaman is only for the period between now and next February, it sets the direction for the next five years. It is, therefore, complex in nature as it addresses India’s financial requirements at many levels. Those who pay taxes may not be entirely happy with the relaxations given, particularly senior citizens, but these are substantial enough for the present.
Analysts had predicted that there were unlikely to be big bang announcements, as the need exists for numerous small but significant initiatives. The FM has made clear the government’s line of thinking with the enunciation of nine priorities. These, without a doubt, are also a response to the opposition’s continued harping on the ‘problems of the common folk’. However, instead of populist giveaways, the attempt has been to address structural issues, seeking innovative ways for improvement. This is in line with PM Modi’s philosophy of helping people help themselves.
The nine priorities are in the context of what India’s opportunities and challenges will be in the future, based on past experience. The first, of course, is the agriculture sector, in which the Modi Government has been unable to bring about the necessary reforms due to resistance from vested interests. So, a different approach is being adopted by boosting productivity and resilience in numerous ways. It is the same with the employment issue, where the real problem is a mismatch between job availability and skills. The other priorities such as ‘inclusive’ human resource development and social justice; manufacturing and services; promotion of MSMEs; urban development (people of Doon will agree with that); energy security; infrastructure; and, very importantly, innovation, research and development; are all present-day requirements that need to be dealt with by, both, the Centre and the states. Care has been taken, however, that the approach is an enabling one, not the imagined ‘gift’ that some would have descending from heaven without putting in any effort.
Of course, there is some heartburn because Bihar and Andhra Pradesh are being provided special attention through large projects, but that was a given. Politics cannot be ignored, especially if the government’s majority in the Lok Sabha is at stake. Southern states will complain at ‘being ignored’ but they are covered under the government’s declared priorities. UP, Maharashtra, Rajasthan, too, have not been targeted, either. As the analysts responded, the Finance Minister must also have some things to give away in February.
