Every year the government of India comes up with the budget presenting the details regarding the expenses of the upcoming year and sources of revenue for the year. This is also the time when the annual financial statements of the government are declared.
Why Budget is important for everyone?
Let me try to put it in a very simple context. In a general Indian family, mothers are generally the managers of the home. While fathers work hard to earn money, mothers play an important role in managing and spending them. Now, depending upon the income earned, the budget on how to spend the amount and who will get what. In family, everyone will have their needs and demands. Depending on the importance of the requirement, mothers will allocate the money after the required expenses. Similarly, the Indian government manages the funds it collected as taxes from people & businesses. Now, like the different members of the family, the announcement of the budget will give the details regarding which segment will tell what each segment will get and how.
Why this particular budget is important?
In 2014, when Narendra Modi led NDA came into power, the economic situation was in tatters. The GDP growth rate was below 5% and inflation was in double digits and the fiscal deficit was way high of the target. From there the policies of the government led to fiscal consolidation and macro-economic stability. In 2019, when the Modi government was re-elected with an unprecedented majority, the economic situation slipped down. In the last year, the growth rate had slow down and inflation started to climb up, although mainly led by food inflation. FM took a slew of measures to tackle this nosediving growth rate since August, however, there’s not much impact.
So, TJEF Editorial Board is going to come up with a series of pre-Budget Analysis articles to give an idea of the current situation in various segments and what can we expect in this budget.