We are just around the corner for another budget. The Finance Minister has been consulting regular industry leaders, business associations, and occasional trade unions in preparation for the budget.
While memes around the falling Rupee are aplenty, inaugurations of trains and tunnels continue to take space in the 24×7 news and Kumbh melas and kite festivals are celebrated by investing public money, what is missing in the debates is some serious issues the economy is facing today.
Unemployment and underemployment, income inequality, agrarian distress, inflation and price volatility, household debt, poor allocations in education and health, and neglect of the informal sector are a few to name.
Incentives to the corporate sector continue unabated, corporate tax continues at reduced rates since the pandemic, while corporate profits nearly quadrupled in the past 4 years, employee salaries are stagnant, which can’t even beat inflation.
Write-offs of large loans taken by corporations run into millions year after year, which in addition to the haircuts imposed through the IBC/NCLT process, is making the banking sector vulnerable.
It is against these realities that the budget is looked upon. These issues are not new. It is continuing from the past, aggravated with demonetisation, lockdown and GST. In the past, the Minister dealt with these issues with a series of slogans that resulted in nothing substantial. Some of them were Amrit Kaal, Atmanirbhar Bharat, Sankalp Se Siddhi, Clean India, Make in India, Digital India, and Startup India.
Will it be the same again? Or will the minister pull a rabbit out of a hat to address these issues?
-Team CFA