What are your expectations from the union budget 2019-20?

The Union Budget 2019-20 came as a shift from the expectations that the Union Finance Minister had set. While privatization was not a top priority, the announcement of private sector banks and IDFC Bank joining the list of those to be privatized, has raised eyebrows. Critics argue that such a move might not be the best solution, given the current economic challenges and unemployment issues. Let’s explore the implications of these decisions and the broader context of the budget during the post-COVID era.

The Privatization Debate

A Shift in Policy: The announcement of privatizing 2 public sector banks, along with IDFC Bank, has stirred quite a debate. This move was unexpected, given the Minister's earlier comments that there would be no further privatization.

Impact on Employment: Critics argue that privatization may not solve the unemployment crisis in the country. Many fear that privatization could lead to nepotism, with top positions filled by family and friends instead of merit. Additionally, it could lead to a decrease in wages and working conditions for bank employees, many of whom are already grappling with long working hours and low pay for their hard work.

Conservative Expectations

Individual Responsibility: For an individual, the mindset remains to carefully manage finances, paying upfront for everything and avoiding unnecessary expenditures. This mindset underscores a sense of personal responsibility, especially in times of economic uncertainty.

Unemployment and Economic Downturn: While one can justify the current economic situation, some still question why the government is considering privatization to address budget deficits, rather than exploring other avenues, such as taxation or increasing income from other sectors.

Post-COVID Expectations

The announcement of the Union Budget 2019-20 comes at a crucial time when the pandemic has had a significant impact on the economy and daily lives of people. Here are some key expectations and steps the government could take to address the situation:

Women's Empowerment and Education

Focus on women's empowerment and education, particularly in rural areas. Initiatives like e-Chaupals and e-Net can provide more access to resources and support for women. Announce measures for the safety and security of women. This could include improved public transportation, better law enforcement, and financial literacy programs that empower women to manage their finances more effectively. Cheaper kitchen items are expected to help reduce the financial burden on households, especially those that have been directly impacted by the lockdown.

Job Creation and Employment

Ensure proper employment opportunities are created for those who have lost their jobs due to the lockdown. Special focus should be on the youth to ensure they can return to normal industrial and commercial conditions. Increase income tax exemptions and standard deductions to provide financial relief and encourage investment and employment.

Support for Industries and Farmers

Provide substantial government support to all industries to help them restore normalcy as soon as possible. This can include grants, subsidies, and other forms of financial aid. Offer assistance to farmers and agricultural laborers, who have faced significant difficulties due to the pandemic. Increased allocation for employment generation in rural areas can provide local job opportunities for those returning from the cities. Increase interest rebates on housing loans and provide tax incentives for investments in housing to stimulate demand. Grant higher income tax exemptions on interest from fixed deposits to support retired individuals who are struggling due to the lockdown.

Current Economic Situation

Despite the budget's intentions, the reality is that the government treasury is empty. The projections indicate a significant contraction in GDP growth, from -23.5% in the first quarter to -7.5% expected during the next financial year. The economic survey suggests a growth of 10-11% in the GDP, a positive outlook tempered by the ongoing uncertainties.

India’s global reputation in pandemic response, particularly in vaccination efforts, has brought significant international attention and support. However, this positive global image must be leveraged to address the domestic economic challenges effectively.

As the situation evolves, the Union Budget 2019-20 holds the potential to mitigate the economic impact of the pandemic. The government must balance the needs of different stakeholders and ensure that the budget aligns with the expectations and realities of the current economic landscape.