If the humongous budgetary allocations for infrastructure development, notably in the highway sector in the four election-bound States, are any indication, it is evident that the BJP is making no bones about the fact that its priorities lie not so much in identification of infrastructure projects in the States where they are most needed, but in widening its political footprint. It is unfortunate if this means even using a budget for the entire country to try and tilt the scales in its favour. The million-dollar question now is whether the financial munificence will translate into votes for the BJP and its allies.
C.V. Aravind,
Bengaluru
The Union Budget does not reveal the real position on revenues and expenditures for the current financial year, as well as the next, and relies on borrowings to finance government spending without any thought or consideration being given to the interest payments implications on debts. How long can the government live on borrowed money? In light of the precarious fiscal position, efforts should have been made to curtail unnecessary and wasteful expenditure instead of resorting to heavy borrowing to finance schemes, many of which are show-pieces and a drag on the finances of the central government.
V. Padmanabhan,
Bengaluru
A bit off-putting is that Budget 2021 envisages a total expenditure of ₹34.86-lakh crore for FY 22, no different than the ₹34.50-lakh crore of FY 21 even as ₹12-lakh crore is left to spend in the fourth quarter. In the wake of a pandemic that is still no less worrisome this year, the intentions could again be far ahead of implementation that is largely in the purview of the States.
If the Centre-States equation remains as strained as now, the progress would be similar.
With an ambitious spurt in budgeting for Infra and growth schemes, revenue shortfall would need to be made up. FY 21 provided for market borrowings at ₹9.67-lakh crore. This has increased to ₹12-lakh crore now. The creation of a pseudo bad bank in an asset management device, would surreptitiously add ₹8.5-lakh crore of NPAs that will no longer be a nightmare to the account ledgers. The debt kitty, now at 85% of GDP, will swell to become a drag on the economy.
Sadly, the Union Budget is silent on the immediate need to provide interim income to the millions of the less privileged who were affected the most last year. If this class is not in the scheme of things, for whom has this "budget of a millennium" been crafted with fanfare?
R. Narayanan,
Navi Mumbai
A budget is good or bad depending on who you ask. Few have the wherewithal to read the entire document, a necessary condition to pass judgment. Most go by the headlines which can inform as well as mislead. A dispassionate analysis, that looks at the minuses and the pluses, is the preserve of some experts who have no political axe to grind. Discerning critics look at the fine print because numbers hide more than they reveal.
The Budget is basically a number-crunching exercise that seeks to balance income with expenditure.
Over the years, it has assumed larger significance as a major policy statement, an expression of the government’s political philosophy. A week after the Budget’s presentation, it fades away from the media’s attention and public memory. Few bother to monitor whether the targeted budgetary allocations and revenue realisations are on track subsequently.
V.N. Mukundarajan,
Thiruvananthapuram
