Budget 2015: It’s Delivery Time, But Is Modi Govt Ready?

The dreams were sown in perfectly fertile soil and around May last year, the brightly hued roses bloomed much to the relief of BJP. The ruling NDA government with BJP at the helm of affairs, sat literally on a bed of roses, errr… promises. The maiden budget delivered by Union Minister Arun Jaitley lacked much panache. But, that was swept under the carpet. The new government didn’t have time to prepare much for the first budget. Also, how much could the government that had just taken reins, promise much and deliver more? That was BJP’s masterstroke.

But, now that the push has come to shove, a lot more is riding on this year’s budget to be presented by the NDA. What about the promises that were made before the poll? The general public has been feeling that the new government has been focusing a lot more on international relations, elections in states, than matters that can actually make a difference to the common man. Hence, the development-mantra is yet to be realised. This year, the deliverables are tall and inflated too. This is perhaps, because BJP had more time at hand to prepare for this. And, hopefully, for both the party and the common man who bet his horses to give clear majority to a single party, time is now ripe to seek deliverance.

One of the biggest announcements made by Prime Minister Modi that raised hopes has been that of Make in India campaign. In a few weeks after this announcement, RBI governor Raghuram Rajan said this may be counterproductive for India. He suggested, instead, India could focus on Make for India campaign. A step towards self sufficient growth. Allocations for smart cities that would come up in about a 100 numbers are awaited through the upcoming budget. Will this find place in Budget 2015? The answers are awaited.

Finance Minister Arun Jaitley is putting final touches to the budget that will surely be seen with more keenness than the last one. What are the expectations he is riding on? Reduced taxes, tax holidays, divestment of loss making PSUs so that the state exchequer does not bleed, benefits for common man and senior citizens, improved tax laws for key sectors that have long been discouraged through time and age, so on and so forth.

In the recent times, experts have been analysing some positive growth for India. In real sense, the ‘acche din’ that would help India surpass China in GDP. Post Indo-American bonhomie, with Obama having promised ‘full cooperation’ with India on trade and nuclear fronts, India is now looking forward to better delivery of goods to its own people and on the side, improved bilateral relations with neighbouring countries.
However, what the experts said, but Indians missed was: China’s GDP is falling and this will well give India an edge over the manufacturing backyard of the world. The world’s largest economy, China expanded at its slowest last year, since last 24 years.

With all eyes keyed on India with its march ahead, government has a better job at hand of delivering on promises, over winning Delhi elections.

Prime Minister Modi and his key ministers are travelling the world to invite investors to put their money in India, promising all the help needed for businesses to thrive. This is a simple math. Get investment, improve international presence, better economy and create jobs. Quite a target achieved.

However, there are still way too many gaps before the Indian economy begins to soar. The few-months-old government is yet to deliver on its ‘reforms’ promise and will now tread with great care on massive changes. Labour laws are being fine-tuned to suit the new entrepreneurial pursuits people may be after, once the favorable atmosphere is created. India’s GDP right now is hovering around a healthy 5% but its population has much to fill its hungry stomachs.

The government needs to relook at a few old things and replace them with changing scenario, especially with the country developing great appetite for ecommerce, the new age business model.

A nationwide GST (Goods and Service Tax) is still in the making and this is going to be the highlight of this budget, owing to its timing. Having taken the ordinance route for land acquisition bill, Modi government will have to focus more on balancing the act between agricultural community and also the industrialists who seemed disappointed with the undue delay previous government created for their businesses scuttling their scope.

Quick resolution of disputes to create a favourable atmosphere for businesses is something that’s expected of the new government. Tax holidays are much needed for businesses that are growing outside the conventional mode of development, with great potential for the future. A stable tax regime, of course, would do very well as a delicious dessert.