Union Budget 2022, which did not propose any significant economic, financial and tax reforms measures, has been wildly divisive. While proponents claim it will change the scale of India, naysayers see it as unabashedly capitalist.
In an exclusive member's-only chat, founder of The Quint, Raghav Bahl helps make sense of this "unique" budget in conversation with Nishtha Gautam, Opinions Editor.
Unapologetic Budget
"Budgets in India are very unusual affairs. We've built them up to be these big days where the government is supposed to lay out a full blueprint of its economic policy, not its fiscal policy," he says.
"This year, the budget is not a complex document. It doesn't make tax changes, it doesn't make grand announcements," he adds, "Therefore people are a bit taken aback, because we're so used to a very complex document which tries to address the fisher-folk of Odisha to the paddy farmer of Punjab."
This is a unique budget which can be captured in a single line: cut subsidies by 25 percent, increase capital expenditure by 25 percent, and hit the eye-catching figure of $100 billion of public capex.
The government is banking on trickle down economics, that is, if the richer sectors of the economy prosper, the good times will slither down the crevices to help the poor. This unapologetic approach exposes the Modi government to future political wounds.
Members' Queries Addressed
Many members had questions concerning the government's attitude towards subsidies—especially food—and social welfare schemes. Bahl addressed those and expressed surprise at the government's rationale behind not capitalising on the PDS, a system which has proven to be effective and efficient.
There was also a discussion on no relief to the average taxpayer and the government's decision to go big on infrastructure expenditure.
Bahl says, "Well, it's the government and it has decided to make some political-economy decisions. In a democracy, a government is well within its rights to do so as voters have the right to punish or reward them for the same.
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