This is apropos two op-ed articles titled ‘India’s Budget’ and ‘India’s budget: a forward looking, citizen friendly approach to salaried class’ carried by the newspaper on last Tuesday and yesterday.
In my view, however, these are not purely objective assessments of India’s Budget per se; these are in fact excessively and unnecessarily laudatory for whatever reasons.
The writers, Huzaima Bukhari, Dr Ikramul Haq and Abdul Rauf Shakoori, and Syed Shabbar Zaidi have pointed out, among other things, that the budget seeks to provide relief to the middle class through revisions in direct and indirect tax rates.
No doubt there has been a significant reduction in tax charges for the salaried class. But the learned writers seem to have lost sight of the fact that the Indian Budget has come against the backdrop of a growth slowdown in India, weak domestic demand, and a depreciating rupee.
Moreover, the world’s fifth largest economy has been facing a fall in foreign investment. For example, total (or gross) FDI inflows into India fell over 16 per cent to $70.9 billion (Rs 6 lakh crore) in FY24, from $84.8 billion (Rs 7.2 lakh crore) in FY22.
In her budget speech, Finance Minister Nirmala Sitharaman announced significant tax rebates for salaried class and unveiled a series of initiatives for Bihar. That is why perhaps the Opposition has rightly criticized the Budget, accusing the government of favoring taxpayers and voters in Bihar while paying little or no attention to crucial sectors such as health, education, social welfare, and rural development.
S. P. Chatterjee (Dubai)
Copyright Business Recorder, 2025
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