Budjet – set – go: Achieving an economic blast-off with clinical precision with Budget

An annual Budget is a mundane housekeeping exercise for any economic outfit, involving the projection of income and expenditure sources for the upcoming year. However, when an annual Budget pertains to a nation and includes the rolling-out of national schemes, finance bill-related changes, policy-level proposals, and is accompanied by an economic survey by the side, the annual Budget, then has the potential to be a BudJet.

The upcoming annual Budget on 1st February, 2025 is the first full-year Budget in the third-lap of the Modi government. In the backdrop of (i) a stable coalition government with runway for next four years, (ii) no major upcoming election rush and recent positive wins in state elections and (iii) buoyant all-time high tax collections, seen in contrast to (a) early sluggishness spotted in economic numbers, (b) anxiety in middle income earners towards impactful taxes and (c) big catch-up required on per capita net income, the stage is set for this Budget to outshine and be a BudJet.

Leveraging our strengths and limiting our weaknesses is a clear path to achieve individual success. The same holds true for a nation as well. As a nation, our clear strength is our abundantly latent human capital and leveraging it, is the single source of truth for achieving our true potential. So what can make this upcoming Budget, a BudJet?

Employment – The interim budget proposed certain schemes for stirring employment and creating jobs. A lot more can and needs to be done to fulfil the economic aspirations of our growing population. Generating enough employment should remain a razor-sharp focus for our nation. The annual budget 2025 should build-upon its initial effort on job-creation under the interim budget. Whilst minor fiscal incentives can result in some impact, a bold and sizeable impetus to job creation will make it a BudJet.

Incentivizing job-creation through sizeable tax policy interventions, can ensure multi-fold growth in job creating and retention. In addition to manufacturing, focussing on other people-heavy sectors such as Global Capability Centres, Retail and Tourism and Logistics amongst others, can have a direct impact on millions of lives over the coming years.

Education – Not only is an educated workforce, job-worthy, but is also an enabler for job creation. The objective of creating enough employment opportunities can only be fulfilled when fuelled with the thrust of education. 
Whilst a lot is happening to enhance the education-levels of our workforce, the mammoth change that education can bring, requires us double-down on educating our deserving population.  

The problem of education cannot be solved just by throwing money at it. It would require many other systemic and ground-level changes, for our nation to truly leverage on the power of education. The Budget is a good platform to allocate significant and sufficient resources to this cause and then leverage the administration infrastructure to achieve the desired outcomes. There is no other way for us, but to enhance the quality of our workforce.

Entrepreneurship – Alongwith education, the second pillar towards creating jobs and enhancing lives is that of entrepreneurship. India is a land of entrepreneurs and unleashing the animal spirit of entrepreneurs will augur well for our aspirational economy. The Budget, in its truest sense, can act a catalyst to enhance the ease for businesses as well as their competitiveness. Untangling the complex web of tax laws, enhancing access to credit and markets alongwith making available a supportive regulatory framework for businesses to thrive, is an integral expectation from the annual Budget.

A wish-list of a seeker never ends, but as always less-is-more and rather than spreading the impact too thin over many measures, a concentrated effort pivoting on job-creation powered by education and entrepreneurship will make our economy and country BudJet – set – go!