We Need A Budget Push

The gradual decline of Corona infection in country is raising hope of a normal life after a long period. We are trying hard to accommodate all sufferings of a stalled life. Business sentiment of country is surging prominently. Hope we will get back to the course with proper policy backing from the part of the government. With the growing fiscal accumulation on ground of tax collections we are expecting a sound outlay on public spending in the coming budget. Industry lobby are waiting for a comfortable investment climate with the budgetary provisions. General people are waiting for a comprehensive budget announcement so that managing ‘bread and butter’ become bit easier.

The long stalled life has severely hit the low-income unorganised sector workers. The government during the period generously had extended all possible support through its distribution channel and people managed to survive. And now they on their own are fighting to manage to get back to a normal life. A better budgetary support thus will mean high to safeguard the demographic concerns of the country.

 

Boosting the Supply side

Small business units if get a good budgetary backing would surely mean a lot. Like credit support with some interest exemption will enhance their business as well as profitability concerns and help them to compensate the brunt of lock-down burden. To be very specific the rural economy still contributes significantly to the aggregate demand. So the small business units in rural areas which are significantly concerned to roll over the supply of big industrial units need to survive well. The Union government during immediate unlock stage extended favour of stimulus package to the MSMEs which has significant contribution to the GDP of the economy. Now it is time demanded to overhaul the measure so as to reap the best result. To tone up the supply side of the economy it is highly necessary now.

Pix- Credit: Amit K Sikder

This apart the urban employment generation concern is to be taken care of. The closure of traditional units during quarantined phase should be placed on policy table and need to be revived through a comprehensive parley.     

Experts are pitching for more public spending ahead of budget when we are almost close to a normal due to low Corona infection. And a better public spending thus could be a best measure to bring economy out of the low pandemic trap.

 

Demand side also needs care

Low income capacity of people still is a cause of concern. The maximum share of population comes under this category and even now is operating below usual income capacity. So the budget must accommodate the cause of employment generation. Agriculture always has been our advantage since the beginning of five-year plans. Unfortunately for more than a decade it is at an abysmal low. Its contribution to GDP is declining gradually.  If the agrarian class get best policy support and see better income potential in cultivation then it will obviously sound well for a robust rural demand for industrial produce. Market orientation of agricultural produce is required to ensure better price but it is of first and foremost priority to make it sure that farming is also a best career option to us. The ongoing chaos over farm laws unfortunately conveys a message of deprivation for the farming community. The marginal farmers don’t understand pros and cons of the law but grossly to most of them its’ a message that the government is against their interest. We don’t know what the final fate of the law is but the gross message to the farming community may hamper the rural sentiment further.

In the forthcoming budget we are expecting a comprehensive announcement which will curtail the social cost of farmers’ stir. Budgetary support for better farming practices is highly required now to dismantle the farmer’s uproar and establish a favourable farming environment. Near about 70 per cent population’s betterment in terms of earning capacity will significantly contribute to the aggregate demand of the economy. Bringing every class to the mainstream of life will be the best democratic success.

This budget beyond economic insinuation needs to penetrate the social context amicably to harmonise the socialisation which miserably is disfigured for an almost anomic stage for long.

As the economy already has started to rebound an all-inclusive budget will help the economy and society to escalate to a buoyant growth trajectory. And we all are waiting for a grand budgetary push.