<b>Letters</b>: A 'Make in India' Budget

In the article, “A big-bang Budget” (January 7), T N Ninan is justified in observing that against the backdrop of demonetisation and slowdown in the non-agricultural economy, the government is expected to respond in a way that goes beyond the usual mix of politics and economics.

However, it is likely the Narendra Modi government will stretch the income tax slabs, raise the limit for tax-free income and announce other alluring schemes in the Budget to woo voters in the five states going to the polls just days later. Earlier statements made by Bharatiya Janata Party chief Amit Shah and Finance Ministry Arun Jaitley indicate such a possibility. 

But the tax-savvy Jaitley will unlikely offer anything for free: He would have some other card up his sleeve — say, imposing capital gain tax, an out-of-the-box cess or hiking the service tax rate — to balance the huge outgo. 

Ninan offers well-meaning dos and dont’s for the government to draw up the Budget. But ultimately, the government will bank on the Budget route to woo voters.

Regarding the possible introduction of a universal basic income scheme for the bottom 50 per cent of the population, it would be better if such a scheme applies to the intended section only instead of the prime minister asking the well-off to voluntarily give up their claim on it.

Let this not be a “big-bang” Budget, but a unique Make in India one.

---

Vinayak G Bengaluru