“Wealth is like a tree; its roots are Dharma and the fruit is pleasure. Achieving that kind of wealth which further promotes Dharma, produces more wealth and gives more pleasure is the achievement of all gains (sarvarthasiddhi)”. –– Kautilya, The Arthashastra {9.7.81}, Edited and Translated by L N Rangarajan, Penguin Books, New Delhi, 1992
Traditionally, the Budget is understood mainly in terms of tax brackets and allocation for various sectors. In common discussions, more critical pillars of the Budget, like fundamentals of fiscal consolidation and enabling wealth creation for empowerment, are generally neglected. With the upcoming Election Year, everyone naturally expected this year’s Budget to be more populist. The Modi Government, as usual, defied those expectations. The financial statement for the fiscal year 2023-24 presented by Smt Nirmala Sitharaman has surprised economists and market players. Besides the basic features of the Modi-led Government’s approach towards budgeting and execution, the backdrop of current global turmoil needs to be kept in mind while analysing this Budget.
The first Budget of Amrit Kaal was the opening line of the Budget speech – a clear indication that this was not just an annual income-expenditure statement but a framework for laying down the vision for the next twenty-five years.
While explaining the priorities, using the analogy of Saptarshi (Seven Sages) is an innovative approach. The significance of the seven rishis of ancient Bharat, who are mentioned and contributed to the Vedas and are considered immortal due to their knowledge tradition, is unparalleled. The seven fundamentals of Inclusive Development, Reaching the Last Mile, Infra and Investment, Unleashing the Potential, Green Growth, Youth Power, and Financial Sector Reforms form the main pillars of the 2023 Budget’s speech. These value-based objectives will be the guiding force for the policy-makers of resurgent Bharat.
Amidst the global economic slowdown, Budget-2023 displayed a magnificent balancing act for the future. Raising capital expenditure by the Government is the focus, and fiscal consolidation is still a priority. There is a massive emphasis on re-energising the rural economy, continuing infrastructure development and supporting the marginalised sections, areas and MSME sector. Along with the increased public investment, private investment -through improved business conditions, access to financing, and domestic production through customs tariff adjustments – is also ensured.
While recognising cow dung as a source of wealth, the Government has also proposed Centres of Excellence for Artificial Intelligence in the coming year with a call to Make Artificial Intelligence for Bharat. The budgetary provisions have incentivised the production and heavy infrastructure development without diluting the commitments towards going green. Attractive incentives and rebates are attached to the new tax regime. Increasing the tax net, even at the cost of adverse political implications and by ensuring harassment-free tax collection, has been the approach of the Modi Government, which is further reinforced in this Budget.
In the post-COVID-19 era, Bharat has emerged as a ‘bright star’, and many international agencies have recognised the same. The Finance Minister rightly credited this to the unique world-class digital public infrastructure, COVID-19 vaccination drive, and proactive role in setting the green goals. A collective conviction for building the AatmaNirbhar Bharat is another reason behind this resurgence.
Despite the shining performance of Bharat in comparison to other major economies, a cautionary approach is prevalent in this Budget. The global economy is in turmoil due to uncertain recovery after the COVID-19 pandemic, the war in Europe and changing geo-strategic situation. The Anglo-Saxon development model is facing another cycle of crisis, and the Chinese alternative is not trustworthy enough. Bharat’s consistent position on the principles of AatmaNirbharata and independent foreign policy is not seen very kindly in the realist world. The anti-Bharat forces have realigned. They are employing various toolkits to target Bharat’s growth story. A series of reports undermining the democratic and economic potential of Bharat are indications of what is in store in the future. Economic growth and defence preparedness are both critical requirements for Bharat for the world to receive the civilisational message of Vasudhaiva Kutumbakam.
The Union Budget 2023 is undoubtedly prudent and pragmatic in this direction. Yet, its success will depend on the political will, bureaucratic execution and national-level participation of society, especially the youth, industrialists and innovators.
