By Vivek K. Mobile: 09920183006 Email: firstname.lastname@example.org
“Without any surprise, this clearly ended up as a ‘pre-election budget’! While the various sops & concessions announced in this Budget are going to be a sure shot cash outflows, the Government’s assumptions on revenue receipts seems to hover around lots of assumptions & imaginations. So this opens up a big debate on how dependable is the optimism of keeping the fiscal deficit at 3.4%.
The government via the Interim Union Budget attempted to strike a fine balance between fiscal prudence and populist measures in light of the upcoming general elections. The budget clearly attempted to address and appease various economic sections of the society such as farmers, retired personnels and rural and middle-class people. Government announced direct transfer of Rs 6000/year to farmers owning up-to, two acres of agriculture land and expects around 12 crore farmers across the country to benefit from the same . Further, finance minister announced slew of measure for middle class taxpayer by relaxing tax-slabs and increasing the limit of standard deduction.
We believe that the path to achieve the mentioned fiscal deficit target would be a tough, considering the government finances. In light of the above, cutting of government expenditure on economic activity related areas may not be ruled out in coming months –especially post May’2019. To sum up, it wasn’t surprising to see doling out of several sops in light of the upcoming general election, however how it will impact the economy in subsequent period needs to be considered.“