Ever since this budget was read out by the FM, I have been
showing my anguish…. Perhaps that has given impression to all my friends that I
am furious because of the re-introduction of LTG i.e. Long Term Capital Gains
tax.
No, that is not correct.
In fact as a student of economics, I must say that this was
a very good budget in the theory perspectives….it is always good for economy that
the government spends on the people at large, to improve their standard of
living by giving them good education, healthcare, enhanced income…and to cover
these spending to pull money from those who can afford to shelve a bit….
What irks me is that he hardly has any time to prove and
fetch the fruits out of this budget….
Modi should have emphasised on executing and delivering on
the policies that he has been formulating over last 3 odd years rather than
again prescribing new policies…..
The question is where is the execution??
He can’t expect to win elections only by selling dreams all
the time….
That’s why I say that he and his FM have become too overoptimistic
rather I would say arrogantly overconfident of winning the election. They feel any shock will be absorbed by the
people quietly…
He should have given balanced budget by giving some tax
relief to both individuals and corporate and put more stress on the execution
of his earlier policies, this year.
Ideally this particular budget should have been Modi’s first
budget after winning the next general election….LTG as well as no tax relief
would have got absorbed….and also he would have got next full term to show results to the world and certainly win the
subsequent election too.
If you ask any sound
economist to evaluate this budget neutrally, then FM is most likely to get 8/10
marks. Because it is indeed a good
budget for India’s overall growth, if everything is executed adequately then we
shall see the results over next 3-4 years….but then perhaps the credit will be
taken by the next government!!
Though I am not a big fan of our politicians, I strongly
feel that as on today if there is any one politician in India who can do good
for our country then its Modi. It would
be unfortunate for our country if Modi doesn’t get another term!!
That’s why I say that if at all Modi has to lose next
election then this particular budget was the last straw on the camel’s back….
I believe the interest payment of 5.76 lakh crore rupees resulting in a deficit of over 6 lakh crore rupees, huge pension outflow of 1.68 lakh crore rupees and huge administrative expenses are all non productive and shall lead to more inflation. Money is just being collecred from Industry and Tax Payers and being thrown to win votes. How much of the money really spent on intended purposes id any body's guess. The Government has reduced inyerest rates on small savings and bank fixed deposits so much that there is no other option left for investment than stock market and MFs. Now Hasmukh Adhia says why to favour a particular asset class. Huge amount is being spent on remuneration to politicians anfd government employees and they are not at all accountable. Corruption is very very high. MSME are suffering post demonetusation and shoddy GST implementation. There are no jobs for the youth. This Government is answerable for these issues. The bubble of Arrogance and over confidence has to be burst in 2019.
ReplyDeleteMSME sector where I belong to, is badly suffering as a result of all these policy changes. We still believe in modi govn to come out of this very shortly
ReplyDeleteAvi, I read your blog, and I guess you rightly expected Modi Regime to execute earlier policies before rolling out the ambitious insurance policy. My feeling is that in a country like ours execution will always have difficulties due many reasons including the attitude of administrative staff who are used to regime where they are not answerable for delays n non execution of projects. Moreover Modi has executed many policies as compared to any previous govt.in the process he raised a benchmark very high for himself that everybody wants him to be Magician n fix problems inherited for decades. As regards your view on Insurance policy I view it as his confidence n appeal to all electorate in 2019 that he needs to be reelected for the very execution of that policy. I admire his courage to take political risks of taking decisions which are in the interest of country and at the cost of his winning elections. Overall I think you are too harsh on Modi govt.by commenting that he is selling dreams to people for winning elections. I completely disagree with the statement, and believe that he is the only person fully committed to execute what is good for the country. However execution is not only his responsibility but collective responsibility of the team involved.
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