Showing posts with label budget finance. Show all posts
Showing posts with label budget finance. Show all posts

Monday, July 06, 2009

Budge It

The Fiscal Deficit is at an alarming 6.8%.
The government has given no plan on how its going to reduce it.

The Fringe Benefit Tax is gotten rid off.
The MAT is increased.

The stock market ostensibly disapproves of the whole thing. Its the worst crash on any budget-day in India.

A lot has been said about the budget. Opinions are thrown around by leaders of corporate giants, enthusiastic politicians, financial wizards and whoever else could claim space on any media canvas.

But honestly (and it is hard to be honest about this because it comes with the cost of sounding ultra out-of-shape financially), it don't matter!!

I mean, sure, the allocation of money in the different segments will have impacts on many things.
But for someone like me (and I venture out to guess that there are MANY like me) (of course, many is a stupidly relative term here... but whatever), all this makes little difference to what comes in my wallet and how much goes out of it.

So why make so much noise about it? Most aam-aadmis are not going to feel much. On the contrary, it sets a negative cycle.
The stock market crashes. The financial minds talk negatively about the budget and these talks get broadcasted in media.
Then, to make matters worse, polls are taken in which the aam-aadmi is asked what s/he thinks of the whole affair. Their response to the polls are most likely reflective of that negative sentiment projected by the media, never mind that the aam-aadmi is actually in the section of people that might stand to benefit from the budget.
Then the polls come out and the cascading effect is clearly seen. A negative ball is sent rolling by the media and it amasses so much mass along the way that it might fatally alter the original intent and actually have a negative impact versus the projected negative impact.

The point is, most people, especially the aam-aadmi, have very little clue as to how to interpret the budget. They, in most cases, can't even correctly figure out if it would benefit them or not. If a budget is announced objectively by the FM and absolutely no sentiment was floated in the media powerhouses, the aam-aadmi would be pitiably lost!

Hence, a good thing for the govt. to do would be to step in the media and influence it to say good things about the budget. By hook or by crook. Get the financial big-wigs to say good things, the live media to get experts and inverstors (Foreign investors too) to make positive statements and finally print media to project a postive response to the poll (so even the sentiment of the reliable aam-aadmi is postive). I think, even if all this is rigged big-time, most of us will stand to benefit from it.

Imagine this. I mean, really imagine this.
Two Gujarati gentlemen having a conversation in the train and discussing how 'reliance na share leva joiye'; a doting husband gifting a peice of expensively classy jewelry to his wife; the farmer mighty pleased with his occupation even in the wake of serious occupational hazzards; the proud desi studying/working in a different country claiming how his country is so little affected by all this recession business and how its on its path to glory...
Don't we want this? Don't we want to perceive that their govt. is on our side?

All the govt. needs to do is convince the people that it is on their side. Even if the govt. does this by bending rules and compromising on some integrity, it is a worthwhile endeavor.

Of course, the viability of such an endeavor is a question mark. But if the budget is framed by geniuses whose minds have been tested over a decade (the FM has almost impeccable financial record) and who have the interest of the country at mind, then why not shove a positive opinion about the budget up people's a##?

A positive ball will amass positivity and in general, work towards better well-being of the economy. In any case, the aam-aadmi will be a happy even if he's got a highly frustrating educational system and repressive social system to deal with.