Budget Mantra: Spend, Spend, Spend

The big-bang spending outlined in the Budget jells with the industry expectations. But the implementation of all the schemes and projects is going to pose a big challenge

-  Ashish Sinha

THE MUCH-AWAITED UNION BUDGET is now behind us. Against much hope and expectations, there was no change in the tax slabs, and so no visible relief to the salaried class. Yes, Union Finance Minister (FM) Nirmala Sitharaman did express her empathy to those impacted by the pandemic. And yes, she also thanked the taxpayers in her Budget speech. “I take this opportunity to thank all the taxpayers of our country who have contributed immensely and strengthened the hands of the government in helping their fellow citizens in this hour of need.” That was it. A tweet from T.V. Mohandas Pai, Chairman, Manipal Global Education summed it all: “Budget 2022 is disappointing for taxpaying middle class, but overall positive for economy.”

As usual, the industry captains hailed the Budget as ‘progressive’, ‘growth oriented’, ‘bold’ and some more. And why not? After all, the FM said India’s economic growth was estimated at 9.2 per cent, which would be the highest among all large economies this year. Also, that 60 lakh new jobs could be created under the productivity linked incentive scheme in 14 sectors. TV Narendran, President, CII and CEO & MD, Tata Steel matter-of-factly said: “We cannot keep looking at the government to create jobs. The private sector needs to create jobs as well.” Sanjiv Mehta, President, FICCI and Chairman & Managing Director, Hindustan Unilever echoed Narendran: “The much higher allocation for capital expenditure will have a multiplier effect on the economy and help in sustaining the higher pace of growth. Higher investments in the core sectors will lead to greater demand across industries, push up the capacity utilisation rates and consequential private capex, create more jobs and through higher incomes reinforce greater consumption and demand.”