28 Feb Smart MBA series –Union Budget
The present union budget presented by Honorable Finance Minister Madam Nirmala Sitaraman is considered as Strong, Sustainable and Growth oriented budget. Strong on the basis of macro-economic environment. The macroeconomic environment consists of GDP, fiscal policy, monetary policy, inflation, employment rates, and consumer spending. The budget is sustainable for the balance it is achieving with inclusive development, green growth, and tax implications. Growth oriented for the opportunities for citizens with focus on the youth, infrastructure and investments
In a way the union budget is also a reflection of the vision of the central government. The path the leadership is carving for the Indian economy to reach the target it set to be a 5 trillion economy by 2024. As we all are aware, our Honorable Prime Minister Mr. Narendra Modi had announced an ambitious target of a $5 trillion economy for India by 2024. If achieved, India will become the third-largest economy in the world. The focus is on boosting services sector contribution to $ 3 trillion, manufacturing to $ 1 trillion and Agriculture to $ 1 trillion. However, the recent economic slowdown has made critics question the ambitious target.
The highlights though of the union budget can be consolidated especially for the knowledge of the young MBA graduates. The sectors that would be considered paramount importance is Infrastructure, we can appreciate 33.4% increase in the investments from the last fiscal year at Rs.10 lac crores almost 3 plus percentage of the GDP investments in infrastructure. Highest ever capital outlay of 2.4 lac crores for Railways. 100 transport infrastructure projects identified for end-to-end connectivity for ports, coal, steel, fertilizer sector. This is a great initiative since it would ensure all sectors to get a boost. Cement, steel, ecommerce, commodity all service industries. This is the vision for the next growth that India would see it through infrastructure investment. This is a major boost for India to be called and defined as a developed nation from the current so many years of a developing economy. The second aspect of enhanced quality of education through the training initiatives under skill development council initiatives under Pradhan Mantri Kaushal Vikas Yojna. Giving importance to technical education through three specialized AI (Artificial Intelligence) educational institutions, so as to generate AI based solutions in agriculture, health and make cities sustainable.
The government is also working towards transparency in governance. The judiciary is also working towards making justice delivery through technology, in the process it has recommended for E-Courts to be launched, so as to cater the need of effective and timely justice. Entity Digi Locker to be setup for use by business enterprises and charitable trusts, facilitating secure online storing and sharing of documents with the business ecosystem.
Thus, the budget has gained a lot of positive response from the middle class and the stock market at large. This budget has proved a balanced one with Strong macroeconomic fundaments, Sustainable inclusive growth motives. As pronounced that the budget is for a trajectory of 25 years ahead and futuristic with a plan to implement the Amrit Kaal so as to reach the Suvarna kaal of India.