The Government’s this year’s budget has undoubtedly brought respite to people of almost all the income groups including farmers, Government employees, business and trading communities and the poor as well. Knowing that both the people and as well as the Government had come under economic stress after the breakout of Covid-19 pandemic in March 2020 and remained under it for almost for a period two and a half years due to two successive covid lockdown in two consecutive years, the recovery to pre-pandemic economic scenario enabling the Government to announce rebate in income tax even to people of lower middle classes is a big achievement of the Government by any standards of understandabilies. Though critics claim that concessions in income tax slabs for people of even the lower middle classes have been announced by the Government in view of 2024 Lok Sabha Elections but fact remains Budget is always guided by the economic strength of the Government and not the political considerations of political party in power. Even naives won’t dispute the fact had the Government’s economic position not been strong enough to announce concessions in income tax slabs for people of all sections including even the lower middle classes the Government won’t have found itself in a position to announce huge concessions in income tax slabs even to the people of lower middle classes and the poor. Never forget that since Lok Sabha elections are still more than a year away, the priority of the Government has to be strengthening the economy of the country in the post-pandemic economic scenario and not the political considerations in view of 2014 Lok Sabha elections. An economic slowdown if allowed to persist would by all standards of understandabilities bring down any government at the brink of collapses in any part of the world and henceforth a strong economic furthers the causes of a victory but not the defeat of a political party in power in any parts of the world. As the capital expenditure has been increased by 33%, it is obviously clear that greater spending is the priority of the Government which would consequently attract investors in the ensuing financial year.
“The involvement of private sector and creation of a suitable macroeconomic environment with focus on technical assistance by the Government in states and union territories of the country. The priorities listed in this year’s budget shows that focus of the Government is on a stable tax system, generation of more job avenues and development of public infrastructure across the country”.
Since focus of this year’s budget is also on investments and infrastructure, the Government’s concern is also unemployment which remained around 7-8% this year in the country. While 50% free loans to states for incentivising the infrastructure investment will have a multiplier effect on the economy and employment, the projects in urban infrastructure, irrigation, health and education sectors are likely remain a priority across the country. Despite greater focus on investment and infrastructure the scarcity of resources, improving administrative capacity and investment efficiency holds the key. What matters the most is the involvement of private sector and creation of a suitable macroeconomic environment with focus on technical assistance by the Government in states and union territories of the country. The priorities listed in this year’s budget shows that focus of the Government is on a stable tax system, generation of more job avenues and development of public infrastructure across the country.
