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Showing posts from February, 2022

Budget 2022- The uncommon budget

In the year when 5 states go for election, the government announces a very uncommon budget in India. Unlike the usual practice, the country has moved from pleasing the “common man” to creating and implementing a vision for prolonged growth of the economy for the next 25 years. Consider the relationship of a mother and a child. For how many years can a mother spoon-feed her child? For how many years can she keep the child dependent on her? Wouldn’t it be better if she educates the child on how to eat, cook, and finally earn money to sustain himself/herself? Similarly, giving freebies, concessions, subsidies, etc. is like spoon-feeding the economy and its population. They solve important issues but are short term solutions. Whereas putting money in capital expenditure, making structural reforms, promoting ease of doing business, etc. is equivalent to making the economy self-sustaining. The very fact that the government is bold enough to prefer giving a pro-growth budget and not a populis...