By RC Bhargava

A very different budget and a short Budget speech. The government has come to the conclusion that the Budget is not the occasion to make ‘big-bang’ announcements and make changes every year. There is really no need to make the Budget presentation a major event. Instead, the Budget should signal stability and predictability of policies. Definitely a change for the better.

Following the pandemic, the government correctly decided last year that large investments in infrastructure was the way to take the economy forward and create jobs. This strategy has worked very well and this year the outlay has been increased by 35.4% to Rs 7.5 lakh crore. As government reviews processes and rules, there would surely be a benefit in terms of better implementation. As the finance minister said, this along with the investments to improve logistics, will help in increasing productivity, lowering costs of doing business and making India more competitive. It is most heartening is to hear the finance minister use this language. She also talked of a trust-based government. The sooner these sentiments are understood and acted upon by the bureaucracy the faster India will move.

Government policy is now to privatise enterprises much more aggressively. Several big-ticket privatisations were taken up and Air India has been sold. However, there are delays in several cases. It seems that there is need to review and improve processes, so that this important programme, essential for increasing competitiveness, can meet targets.

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The role of the private sector in creating a fast growing and competitive economy was very clearly recognised along with the privatisation programme.  For several years the government has been implementing reforms designed to make it easier to do business and reduce costs of production. It was apparent from the Budget speech that private sector competitiveness is very much in the mind of government. The entire government machinery, and particularly in the states, needs to make this happen.

This Budget keeps the tax rates unchanged, but several simplifications and rationalisations have been made. The introduction of a provision under which a person can file a corrected return within two years will not only reduce litigation but also bring in greater transparency. The changes proposed in the system for filing appeals in tax matters will certainly reduce litigation and costs considerably.

The fiscal deficit is under control and is projected to reduce from 6.9% this year to 6.4% in 2022-23. The GST system is working well with record collections in January 2022. It seems that the initial difficulties have been sorted out and the time has come for reviewing the system and further simplifying it.

The private industry is to be encouraged to take part in R&D work. 68% of the defence budget is earmarked for domestic procurement. This will help domestic industry. The government has recognised crypto currencies and the RBI will introduce a Digital Rupee. We have to see how this affects industry and business and the common man. The telecom sector will witness the introduction of 5G technology and that will make a difference.

The government is committed to improving the lives of the weaker sections. Economic growth has to be more inclusive, and people at large must experience the benefits of industrial growth and better infrastructure. The past policy of largely relying on doles to help the weaker section did not yield the desired results.

The governments approach of providing concrete benefits like supply of cooking gas, construction of toilets, electrification, supply of clean drinking water, affordable housing, and access to the banking system has been more effective. The budget makes provisions for continuing these programmes. At the same time, accelerating manufacturing growth will create jobs both in the manufacturing sector as well as in the services sector and that will help inclusive growth.

The writer is Chairman, Maruti Suzuki. Views are personal.