By Badish Jindal
The Budget statement of Union FM Mrs Sitharaman doesn’t matches with the actual fiscal statement.
The India is going towards a big trouble with a fiscal deficit of 703760 crores and a revenue deficit of 485019 Crores, which is all time high in history of India. To cover this loss the government is planning borrowing of 448122 crores through bonds.
The debt on India is increasing and the last year government paid 587570 Crores of Interest on Loans and the provision for 2019-20 is 660471 Crores. Which is around 25% of the net receipts.
Under such circumstances the freebees will cost a lot to the Indian Economy, For 2019-20 the government proposed 75000 crores as pensions to the farmers which seems an unwanted step.
In her budget speech the Finance Minister sounded a lot about MSME but the fact is that For MSME the Budget is very negative the government merely allocated 6984 crores to 6.5 crore MSME’s of India. In this budget the budget of Khadi Village & Coir Industry is 1253 crores, the grant to NSIC is 200 crores and administration expenditure is 53 crores, 755 crores for North Easteren states so the Budget for whole MSME is merely,. 4723 crores.
The budget of ASPIRE scheme reduced from 232 crores to 50 crores
The Budget of CLCSS reduced from 1238 crores to 755 crores,
The Budget of PMEGM hardly increased from 3154 crores to 3274 crores.
The Budget of Infrastructure development fund reduced from 962 crores to 894 crores.
Similarly in speech the Finance minister sounded a lot about skill development but the fact is that Budget of skill development reduced from 3400 crores to 2989 crores for the current year.
So this is the Budget situation of very important sectors of India whereas the government allocated 79996 Crores as fertiliser subsidy, 184220 crores as food subsidy and paying 151518 crores subsidy for aggriculture and allied activities,
The government itself is not very hopeful for the growth of economy as they kept the GST collection target 1326000 crores whereas the target for 2018-19 was 1486000 crores whereas government collected 1286000 crores. So the government itself is not very hopefull for growth in India economy. Whereas the government expecting an increase in revenue reciepts from 24.75 lakh crores to 27.86 lakh crores which can not be the view of a very good economist.
The mendatory income tax returns for electricity bill above 1 lakh is illogical as most of the time the power connections are comman in families.
The increase in Excise on Petrol & Diesel will increase the cost of production.
So overall this budget cannot be stated as Industry Friendly Budget and for long term the freebees are going to destroy the economy of India.
Author is President FOPSIA