Hope From Next Budget
– N K Tripathi
Economic growth of an emerging country like India is work in progress. Every budget should contribute, brick by brick, in that direction. On 1st February the finance minister Sitharaman will present the new budget. Nation expects from her a speedy advancement of economy with social equity.
The present framework of the economy is somewhat encouraging for the new budget. This is in spite of the earlier worries about the trade war due to the Trump tariffs and outflows of the foreign portfolio investment from our financial assets. Yet the GDP growth for the current fiscal, estimated by National Statistics Office, is 7.4%. While growth in services sector has maintained its pace of 9%, more cheering is the manufacturing likely to touch 7%. Fiscal deficit is likely to be less than stipulated 4.4% of the GDP. The government has been able to restrict revenue expenditure while pushing for capital expenditure.
The above economic scenario has not come on its own. It was due to many reforms. The tax exemptions for middle class up to 12 lakhs lifted the mood. Reducing the slabs and the rates of GST boosted the consumption. The bank rates were cut by the RBI by 125 basis points in the year. Labour codes are likely to give some confidence to the entrepreneurs.
Now what is the road ahead? After boosting the consumption, the government should now focus on supply side. In spite of easy credit, the industry is not lifting money. For this FM should especially focus on MSME and find ways to provide them easier credit access through all means, including dedicated liquidity funds. Investment in infrastructure should be further bolstered. Substantial funds should be provided for R&D, as this is the course to the future. Trump tariffs have hit sectors like textiles, jewellery, auto, and shrimp. Government should provide relief to them like tax breaks and credit guarantees. Ease of doing business in India is nowhere the desirable level. For this all bureaucratic obstructions should be curtailed effectively. The time has come to prune the fat size of our babudom.
India can rely only in its own economic strength. This only can provide it military and geopolitical punch.
