Budget Focus: A Desperate Gamble

The core tenet of the union government budget for 2022–23 is to pursue ideologically biased policies that deter inclusive growth and an obstinate refusal to acknowledge the realities. It has not only given up on all efforts to protect livelihoods but also, almost exclusively, banks on boosting capital spending to crowd in private investments for accelerating growth. By stubbornly clinging on to such a discredited supply side, the government thereby remains stuck behind the curve even as it almost completely ignores the immediate need to secure adequate employment for the millions badly hit by the pandemic.

The spending patterns in the budget testify to this. The government has now continued to prune the relative size of the budget for the second consecutive year despite the recurring waves of the pandemic, the continued slump in consumption demand, and the extensive rural distress. Moreover, the budget cuts have focused exclusively on revenue spending, including major schemes and subsidies, that immediately affects the overall welfare.