Friday, July 10, 2020
Home Editor's picks Interim Budget 2019: A bridge towards our vibrant future

Interim Budget 2019: A bridge towards our vibrant future

In many ways, the budget is historic in the true sense of the word as it recognizes for the first time that India’s approach to the farming sector has not worked

Also Read

Karan Bhasin
Karan Bhasin is a political economist by training and has diversified research interests in the field of economics. He tweets @karanbhasin95.

A lot will be written about the Interim Budget 2019 over the next couple of days- some may applaud it, some may call it a “political budget” while others may continue to criticize it just as they’ve criticized everything that the government has done over the last couple of days. But the budget is nothing beyond a simple extension of the economic policies that the government has been following since the last four and a half years and it is a simple extension of the larger vision with which the Prime Minister of India led his 2014 campaign.

In many ways, the budget is historic in the true sense of the word as it recognizes for the first time that India’s approach to the farming sector has not worked. This recognition should have come decades earlier, however, for petty political considerations, successive governments have failed to recognize policy blunders and thus, they’ve not dared to correct them. There is no doubt that India’s Minimum Support Price policy has not helped in providing “income support” to India’s farmers, yet successive governments have relied upon this policy for a prolonged period of time.

There was an urgent need to move towards providing income support to farmers and the government has rightfully recognized it and provisioned for it by providing Rs. 6000 per annum to small and marginal farmers. This is significant as it recognizes the need to uplift the small and marginal farmers who own less than 2 hectares of land from abject poverty. A proposal for Targeted Basic Income by Dr Surjit Bhalla and me had advocated covering the entire poor population irrespective of whether they were rural poor or urban poor, however, it is reassuring to recognize that at least the government is partially accepting the concept of Targeted Basic Income. This may very well be a step towards the Targeted Basic Income program in the coming years.

Most commentators will look at the increase in income tax slabs as a move that is political in nature, but such a view is extremely myopic in nature. Successive governments have highlighted the low tax base in India, but they’ve been unable to correct the situation. The disruptive reforms of the government such as GST & Demonetization have led to a significant increase in India’s tax base. During demonetization, it was argued that eventually, a higher tax base will result in the tax burden being evenly spread across people. The interim budget witnessed this become a reality as the government gave major tax breaks to the middle class of India. This came with the government recognizing the contribution of the middle-class taxpayers towards some of its flagship redistribution schemes.

Another important aspect in this budget is that it demonstrates a vision till 2030 and provides a very clear dimension for evaluation of the progress on this front. In that manner, the budget rightfully looks ahead at our vibrant future. A lot of times it has been stated that the policies of the current government cannot be looked in isolation. This budget rightfully ensures that the continuity of policies is maintained. This is very important to ensure that there is a consistent policy framework that is in place throughout the country. We’ve moved a long way from the days of policy paralysis and this consistent policy framework is ensuring that investors and citizens can take decisions without any fear of uncertain changes.

The government continues to be committed to the program of fiscal consolidation and it has decided to stick to the 40% target for India’s debt to GDP ratio. This reiterates the commitment of the government towards strong macroeconomic fundamentals. It is evident with this budget that the government wants growth, but it also wants to focus on redistribution of the benefits of the growth to ensure that India’s growth is inclusive in nature. The fine print of the budget also suggests that the government has a clear sense of purpose in terms of its expenditure towards the development of future-ready infrastructure.

With GST in, the budget is no longer a document that tells us what will be cheaper or what will be expensive going forward, but it gives us a direction for our future. In that sense, today’s budget has very well placed the foundation for higher growth in the future while it redistributed some of the benefits of the past reforms.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Karan Bhasin
Karan Bhasin is a political economist by training and has diversified research interests in the field of economics. He tweets @karanbhasin95.

Trending now

Delhi Riots Chargesheets: Before murdering Ratan Lal, the Islamist mob had held 2 other police constables hostage

The chargesheet filed by Special Investigation Team of Delhi Police in the murder of Ratan Lal and deadly attacks by rioters on IPS Amit Sharma and IPS Anuj Kumar mentions at least 17 accused.

The curious case of ‘Drone Boy’ who has made 600 drones using broken mixer grinders and televisions. A fact-check

While 'drone boy' Prathap NM has claimed to have made 600 drones using e-waste, not a single photo or video of them exist

Criminal Vikas Dubey had tortured his school headmaster to death, exhibited criminal behaviour since childhood: Report

Vikas Dubey had tortured his school headmaster Siddheshwar Pandey to death during his childhood

Used cartridges from the rooftop: What was collected from the scene where Ratan Lal was murdered and what it all means

During the anti-Hindu Delhi riots, the brutal murder of Ratan Lal was one of the first acts of violence that shook the nation from the 24th of February to the 26th of February

Unconfirmed reports of Newslaundry columnist Sharjeel Usmani being ‘picked up’ by UP Police emerge on social media

Islamists and 'liberals' claimed on social media that Newslaundry columnist Sharjeel Usmani, who had hailed Delhi riots shooter Shahrukh as 'Mujahid', has been 'picked up' by UP Police.

From Vikas Dubey has reached Nepal to he may be encountered ‘because he knows dirty secrets’: Read how conspiracy theorists spun yarns

As Vikas Dubey was on the run, the journalists kept themselves busy conjuring up various conspiracy theories.

Recently Popular

Australian surfer Carmen Greentree abducted and raped for 2 months in a houseboat in Kashmir in 2004, pressurised to convert to Islam

Carmen Greentree has penned a book titled "A Dangerous Pursuit of Happiness" narrating her abduction and rape in Kashmir.

Jyoti Basu is the mass murderer India forgot

Please don’t feel bad about speaking ill of the Late Jyoti Basu. If there is another world, be certain that there are (at least) 28,000 voices from the other side backing you up.

Only Muslims go to heaven, Ravish Kumar-like non-Muslims can only hope for a mild level of hell: Dr Zakir Naik explains

Naik said that virtues like honesty and charity cannot ensure qualifying marks for heaven or Jannah. Only Muslims can go to heaven and non-Muslims will go to hell by default, he says.

Netizens ask Netflix to cancel comedian Kenny Sebastian’s special show after he hurls obscene abuses

Social media users are demanding that Netflix reconsiders special show of Indian comic Kenny Sebastian after he was allegedly found hurling obscene abuses to people on his Instagram page.

Payal Rohatgi’s Twitter account suspended, the actress says she is being targeted by ‘liberals and extremists’

Payal Rohatgi has stated that her efforts to share facts has been projected in a bad light by liberals and extremists who control Twitter.

Bhopal: 55-year-old Sabir Ali enters dairy farm and rapes a cow, arrested after CCTV footage revealed crime

Incidentally, the CCTV camera in the dairy farm captured the ghoulish incident, where the accused had stealthily entered and brutalised the animal.

Delhi Riots Chargesheets: Before murdering Ratan Lal, the Islamist mob had held 2 other police constables hostage

The chargesheet filed by Special Investigation Team of Delhi Police in the murder of Ratan Lal and deadly attacks by rioters on IPS Amit Sharma and IPS Anuj Kumar mentions at least 17 accused.

AAP does it again: Arvind Kejriwal supporters hail him for ‘saving life’ of a Modi voter amid coronavirus outbreak

After receiving severe criticism, Arvind Kejriwal supporters have taken it upon themselves to rebuild his lost credibility

Indian and Chinese sides move back at conflict areas along the LAC in Ladakh to create temporary non-patrolling zones

India and China have completed withdrawal from conflict sites along LAC at Galwan Valley, Pangong Tso lake and other conflict areas

Gujarat shows the way in Atmanirbhar Bharat: Morbi, the ceramic tiles hub of India, now looks to take on China’s toy market

150 firms in Gujarat's Morbi have joined hands to create local alternatives to products currently being outsourced from China.

Maharashtra: Thane hospital gives body of wrong Coronavirus victim to family, after cremation hospital informs that their family member is alive

After a family cremated body of Cornoavirus victim, hospital informed they their family member is alive & they were given wrong body

After obscene comments, clip of comedian Kenneth Sebastian calling Sanskrit ‘most useless language ever’ goes viral. Watch video

In the video titled "Journey to the centre of my brain", Sebastian is seen thanking God because 'all the people who spoke Sanskrit are dead'.

West Bengal: News channel owner Sheikh Safiqul Islam, his wife Alima Khatun and journalist Suraj Ali Khan arrested after the channel exposed corruption

Web Channel Arambagh TV owner Sheikh Safiqul Islam, his wife Alima Khatun and journalist Suraj Ali Khan were arrested on 29 June

NCW takes cognisance of the vile, obscene abuses hurled by comedian Kenny Sebastian, asks for probe

Kenny Sebastian was accused of hurling vile, misogynist abuses over Instagram comments. The abuses were flagged by many social media users.

The curious case of ‘Drone Boy’ who has made 600 drones using broken mixer grinders and televisions. A fact-check

While 'drone boy' Prathap NM has claimed to have made 600 drones using e-waste, not a single photo or video of them exist

‘He is with the Samajwadi Party’: Gangster Vikas Dubey’s mother says the government must do what is appropriate

Speaking to the media, Sarla Devi, the mother of Vikas Dubey said that they came to know of his arrest after watching the news on the television.

Connect with us

235,277FansLike
402,167FollowersFollow
272,000SubscribersSubscribe