Budget seen as political ploy ahead of LS polls: Economist

Bengaluru, NT Bureau: Economists felt that the Union Interim Budget for 2024 was more of a political manifesto given the Lok Sabha elections. Moreover, observers also noted that there was limited space for Finance Minister Nirmala Sitharaman to operate in since it was an interim Budget.

Economist Narendra Pani noted that the Budget could not ignore the general elections, terming the exercise a “political manifesto”.

“It may show what and where they believe they need to emphasize and where they believe they are comfortable,” he said.

“Budgets in poll years have to be poll Budgets. No politician can afford to let it go. We can gauge what their priorities are,” he added.

The economist said that despite the populist aspect, welfare spending for schemes like Pradhan Mantri Awas Yojana (Housing programme) had reduced over five years.

Pani also pushed back against the notion that the Union government had done something significant by way of reduction in fiscal deficit.