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Let Me Tell You A Kutti Story…

Here is a very basic and an outside view of how to appreciate Specific activities like budget and Economy in general.

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Kutti (small in Tamil. Not the one used to represent female dogs in Hindi) stories seem to be the flavour of 2021, so here’s mine…

This one is about this annual celebration called Budget.

Year: 2001 Feb 28th 

“What are the highlights?” asked a colleague.

“Visionary budget” replied a pro-ruling party buddy

“Bakwaas. Our party would have done so much better” replied the one who wasn’t a great fan of the govt.

Indian Economy grew nonetheless. 

***

Year 2021 Jan 31st 

“Once in a lifetime budget.” 

Never before budget that is like having Pant & Rahane bat” screamed the headlines.

Feb 1st 2021

“What are the highlights?” pinged a guy in my school group.

“Visionary budget” replied a pro-ruling party buddy

“Bakwaas. Our party would have done so much better” replied the one who wasn’t a great fan of the govt.

And the next 500+ messages were of passionate people from either sides arguing for and against the budget.

Indian Economy would grow again nonetheless.

***

Here is a very basic and an outside view of how to appreciate Specific activities like budget and Economy in general.

There are several forces at play and each action has a direct or an indirect bearing on several forces. Either these forces get strengthened or weakened because of the effect of the action.

The state of Polity and what the governments put forth as their focus areas determine the actions that they would be focussed upon and each of these actions would have multiple manifestations that shall push the cost up or bring in greater efficiencies depending upon overall impact of the action on all forces at play.

Here’s an illustration of what this budget looks like:

Source: Ministry of Finance Budget at a glance

The current emphasis of this government is “aatma nirbhar”. 

So let us evaluate what all “actions” have been taken on this count…

From the allocation of expenditure and from the modification of the custom duty on imports and/or relief on taxes for domestic manufacturers, there seem to be significant focus on providing potable water, health cover, improving railways and highways and assisting MSMEs

Topical also is the expense towards vaccination and the push to create agriculture infrastructure and support.

I am deliberately keeping away from numbers because this is not a number story!

India is a Mixed Economy Nation and by the very definition of it, The State manages a part of the spend. Historically, Indian Govt., spending has been around 27% of the GDP and in this budget, the Govt., spend increased it’s spend to counter the (stated) effects of Pandemic and the (unstated) slow down. 

The focus on core sectors and the state endeavour to develop infrastructure to create future play and the creation of shadow bank to counter the shocks in the Banking and BFSI sectors are clearly the support mechanism needed and in the direction of leveraging the demographic dividend through job creation in core sectors and agriculture.

Source: Ministry of Finance Budget at a glance

While most employees might be disappointed that there are no Tax rebates rolled out, look at this from the context of what are the various sources of revenue for a Government. In a difficult year, the excess spend by govt and the slow down leaves no room for further sops.

So between giving a marginal short term rebate to making the money buy more in medium term, I would choose the latter and that seems to be the endeavour here.

Source: Ministry of Finance Budget at a glance

Calling this one-of-it’s-kind and a budget that is unprecedented might be a marketing ploy that might have raised expectations far beyond what could be fulfilled but it is a strong budget that should help build India in this decade.

So the kutti story is…

Two people went to hunt for a mine to dig gold. 

One found the map, the other the shovel.

Both of them were unhappy because they realised their dream cannot be realised without the other.

If only they realised that there is nothing called a perfect gift.

Every part of the economy moved create a new competitive force. If only we focus on leveraging what’s advantageous, we can make the best out of the situation.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


Tags assigned to this article:
Union Budget 2021-22 Union budget 2021

Satyanarayana Murthy YVS

Armed with Engineering, Business Management academic background and an alumnus of IIM-B, he has had the good fortune of working across varied roles starting from Manufacturing, Sales, Channel Management, Distribution, Brand, Marketing and PR, Business Strategy and Business Management across diverse sectors from Engineering, Oil & Gas and Media. Currently, he consults a few Start Ups and MSMEs besides working on an Analytics Media Tech and Luxury & Lifestyle Market place start up

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