Union Budget 2023 urban-centric, prepared with elections in mind: Economist Santanu Basu

Speaking to ETV Bharat, Basu noted that the tax structure, even though resulting in revenue losses for the government in the short while, would result in filling of its coffers in the long run owing to soaring prices.

Kolkata: Finance Minister Nirmala Sitharaman on Wednesday tabled the Union Budget 2023 before the Parliament. Despite reformative measures such as reorganization of tax slabs and extending the limit of tax rebates, eminent economist and professor Santanu Basu says the common people are disappointed with the budget. Summing up any budgeting practice as "the overall reflection of how much I have earned, how much I have spent, how much I can earn and how much I can spend," Basu asserted Wednesday's budget was strictly urban-centered and had been prepared keeping in mind the upcoming elections.

"This budget is strictly city-centric. Rural people have been practically deprived space on this budget. There is no place, especially, for farmers," he said. "This budget has been presented keeping that election in mind. Even though the announcement of a new education policy was mentioned in this budget, the Union Finance Minister (Nirmala Sitharaman) did not mention a single word about increasing the allocation in the education sector. The FM has talked about digitisation in various areas. But, there are doubts about what percentage of people in the country comprehend the Digital India," Basu also said.

When inquired about tax breaks presented in the budget, the economist observed that the move comes in the backdrop of soaring price rise, which the Central Government is not able to control. "One thing is clear from today's announcement, the new tax structure will be used as the default in the coming days" he stated.

Noting the government has lost close to Rs 30,000 crore in revenue by extending tax cuts, Basu said "in a roundabout way, it will be deposited in the treasury of the Central Government". "Even if the price of oil is increased by Rs 1, much more money will be deposited in the treasury of the government. There is no good news for the common people in the budget," he said.

The economist added that the Centre could have highlighted upon the status of the ongoing projects, but chose instead to announce new ones. "If necessary, the increase in allocation could be reduced somewhat. But announcing new projects without walking on that path and investing money (in existing projects) is actually an attempt to divert people from reviewing the success and failure of old projects," he observed.