Budget 2019 - Long On Promises But Short On Ideas About Fulfilling Them

Finance Minister Nirmala Sitharaman's Budget is long on promises but short on ideas about fulfilling them.

- Prosenjit Datta

There was a heightened sense of anticipation among economy watchers and the corporate sector in the run up to Finance Minister Nirmala Sitharaman’s maiden Budget, and not just because she was the first full time woman Finance Minister in India. (Indira Gandhi, as Prime Minister, had handled the defence and finance portfolios with for brief periods.)

The anticipation was because the Narendra Modi-led NDA government had come back to power with an even greater majority than the first term, and there were some expectations that the first Budget of this term would unveil bold, long-term reforms that would put the economy on a high growth trajectory.

Would the Budget signal new policy priorities? Could it do something to bring back private sector confidence and investment, which had been sorely lacking in the previous five years? Would it announce new ideas that would make farming more remunerative as a profession for the small and marginal farmer? Would it announce steps to make India a manufacturing hub at par with countries like Vietnam and South Korea? Could it make India export competitive in merchandise beyond the traditional areas like leather, gems and jewellery, etc? Would a bold new direct tax reform be unveiled? Would there be something to spur private consumption, which had begun to slow down? And finally, would there be new ideas on generating revenues?

As it turned out, the Budget speech and allocations disappointed on almost all those scores. Nirmala Sitharaman’s first Budget speech laid out a dream for citizens – of Ease of Living, or a Super Charged Economy, of a Connected Future, both in the physical realm as well as on the digital highway. But the actual Budget did not unveil a pathway to achieve them. There weren’t too many fresh ideas – most were incremental improvements instead of changes of direction. The only break from convention was the cloth pouch (