The Indian economy today is facing serious problems from the international and domestic fronts. That is the real situation juxtaposed against the vision of Vikasit Bharat.  Also, the dream of Vikasit Bharat 2047 is less than 25 years away. One therefore expected another 1991 moment in this budget. However, the budget has disappointed badly.

While this disappointment in the budget is on many fronts, there are some high points. One high point is the relaxation in the income tax rates – no tax up to Rs 12 lakh personal income. This will definitely increase the demand in the economy and give a push to economic growth.  About Rs 1 lakh crores will be added to the economy through this tax relaxation, and that will have a good multiplier impact.  However, the impact will be limited and within our Rs. 330 lakh crores economy.   Around 3.5 crore income tax payers (17.5 crore population) cannot make radical changes in the demand.

Another positive point of the budget is its focus on agriculture, as it is “the key driver of the economy”.  Programmes like the national mission on high-yielding seeds, Dhan-Dhanya krishi yojana, promotion to pulses, and cotton mission etc. are proposed in the budget. However, the funds allotted to agriculture have increased only marginally. The impact of these new programmes will be only marginal if at all.

Again, the focus on “investing on people” in the budget is also desirable. However, the funds allotted to health and education have not shown any significant........

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