INDIA
INTERIM BUDGET READS MORE LIKE A DRAFT ELECTION MANIFESTO
ECONOMIC EXPANSION THROUGH DOLES IS UNSUSTAINABLE
2019-02-04 11:29
-
Full marks to Finance Minister Piyush Goyal for presenting an interim budget that could as well be described as the first draft of the ruling party’s election manifesto. Suffice it say that the political mission of this budget may not be easy to emulate by the opposition. Legally speaking, the budget provisions are valid only until the next government presents a new budget for the fiscal, 2019-20. The reliefs and concessions are offered mainly to small farmers and unorganised workers. Their actual financial impact on the government expenditure is understandably unclear. No going government is expected to impose fresh taxes for the interim period. The indirect taxes are not in Goyal's hand. It is largely regulated by the GST Council. By convention, tax proposals are not announced in interim budgets. Goyal has merely given some small financial sops to tax payers at the bottom. Contrary to the given perception, middle-class gets little from the budget. Other seemingly poll-linked multiple budget concessions to the underprivileged may only mean much higher budget deficit for 2018-19 than estimated in the document.