Despite the fact that Finance Minister Nirmala Sitharaman had stated more than once that it would be a vote-on-account, as general elections are due, there was speculation that there could be some big giveaways to lure the voters. The FM not only abided by what she said, but also presented something even more impressive – a comprehensive picture of the economic path taken thus far and its extension into the future. It shows how the project to make India a developed country by 2047 is the cumulative product of an entire government activated by extraordinary leadership.
Commentators immediately accepted that this was the result of a confidence in what has been achieved over the last ten years. The facts and figures cannot be disputed as these are borne out also by independent agencies, Indian and foreign. The Finance Minister reflected this confidence when she stated that ‘our government’ would present the fiscal initiatives for the year in the full budget after the elections.
This does not mean, however, that there was no political pitch in the speech. It claimed to focus specifically on the youth, the poor, women, and farmers – that these are also crucial sections of voters is significant. This approach seeks to cut across the specific caste and community support base of opposition parties. Add to this the incentives being directed at the middle class, which comprises PM Modi’s most positive backers. There will be more to see of this in the coming days.
Opposition parties claim that the government overlooks the plight of the unemployed. It must be remembered in this context that unemployment is a symptom, not the problem. Energising the economy leads to the generation of wealth, which is best distributed not through giveaway schemes but by entrepreneurial activity at every level. If the government’s initiatives are carefully examined, it can be seen that there is focus on imparting employment related skills, as well as creating markets for them. The attempt to revive the education system through the New Education Policy is not just an academic exercise, it is a push towards providing the necessary skills for a transforming economy. Those caught up in the ‘trickle-down’ mindset of the past should study how developed economies are structured.
Thursday’s interim budget is a challenge thrown at the electorate – the opportunity is there, as also the alternative – choose the future you want. A lot needs to be done, but much has already been accomplished!
