The Webster dictionary explains an encyclopaedia to be a work that contains information on all branches of knowledge and a pocket book as a small book that can be carried in a pocket. The Union Budget fits both the definitions, for its expansive outlay covering all critical sectors of socio-economic growth, and for being presented in the shortest time with long-term policies. Yet, it is only the profit & loss account of the Union Government and not the be all and end all of India’s problems.

Long-term vision, no populism

If the Budget day was the grand finale, the Economic Survey played a perfect rehearsal with Principal Economic Adviser Sanjeev Sanyal positioning India’s growth from 2022-23 anticipating responsive policy making and supply side reforms. The clear road to travel was laid down by the Finance Minister Nirmala Sitharaman in her budget speech. 

 The blueprint for the Budget played a prefect launch for a 25-year trajectory with India @ 100 destination as its desired outcome. With the actual and estimated GDP growth rate putting India amongst the progressive economies of the world and a buoyant GST revenue collection, the Finance Minister’s Budget touches resembled a caring mother interested in the long-term welfare of her country, and not in short-term populism.

The prudence and adequacy with which the FM cruised all critical sectors — infrastructure, housing and finance, power, auto/electric vehicles, telecom, manufacturing, MSMEs, next-gen agriculture and, most importantly, defence — had all the essentials of a nation on the rise. Leading the rise from the front, the government’s capex script with a whopping ₹7.5-lakh crore is undoubtedly an impetus for employment — direct and indirect — a booster signal for private investments and, more importantly, a prescription for social and digital infrastructure strengthening.

The manner and rate at which per capita savings adjusted itself remarkably during pandemic times which took a toll on per capita income and stress on per capita expenditure is a separate case study to be analysed in detail. In keeping with this, the FM has put Modi’s government at pole position with more public spending. This is responsible leadership at its best.

Multiple triggers

The triggers of development have been multi-barrelled, fuelled by PM Gati Shakti, digital technologies, drone shakti, linking of rivers, inclusive spending, start-up catalysts. Along with announcements for big-size entities, the FM’s large-size heart has ensured that MSMEs, start-ups and other key social sector drivers are also given adequate boost through emergency and additional credit line, the ₹6,000 crore outlay for raising and accelerating MSME Performance (RAMP), NABARD facilitated co-investment model, tax holiday extension, etc. In totality, the Budget has captured the entire economic value chain leaving none behind.

The accent on technology and digitising the value chain is also a big push in India’s leapfrogging march towards becoming a global leader in digital payments enabling unbanked poor families enter the formal economy. The deepening of this huge financial literacy and participation through digital assets can only get better.

DRDO approach

The Atmanirbharta touch to the defence sector with 68 per cent capital expenditure earmarked for domestic defence industry for 2022-23 is a big cheer to indigenous players. Additionally, the announcement to allocate 25 per cent of defence R&D budget to start-ups, academics and industry strengthens the industry-academia interface with DRDO support. It is pertinent to highlight that the DRDO is one of the leading research funding agencies that promotes the spirit of collaborative research involving public and private academia.

Though the Union Budget’s allocation to education has crossed ₹1,00,000 crore for the first time, the involvement of private educational institutions that offer over 75 per cent of India’s higher education needs to be more pronounced. The DRDO approach in higher education will ensure a win-win approach not only in research and development but also in scaling learning outcomes across the educational value chain — vocational to skilling to new knowledge creation.

The gradual moving away from exemption based regime to a non-exemption based regime is tellingly visible in the Budgets of the past and the present as well. As an educationist, I enter into the last section of my article with a positive hope that the FM in the next Budget considers treatment of receipts by trusts and charitable institutions running educational institutions in a manner that enables them to build institutions of the future moving away from present firewall building. The current model of engagement requires an open mind and heart, both of which the FM is richly endowed with and will certainly do.

The writer is Tata Sons Chair Professor of Management & Vice-Chancellor, SASTRA Deemed University. Views are personal