Presentation of the Union Budget (UB) has
remained an important date in a Chartered Accountant’s annual timeline. The UB
season creates a (predictable) buzz. By the time this BCAJ reaches you, you
would have got a complete download (and perhaps an overload) of the finance
bill provisions. I thought that I shouldn’t tax you with more of that and
instead share some observations of the buzz and drama of the budget ‘season’.
At a high level, the buzz hangs between the
two extreme points of self glorification and mindless criticism. Compared to
the ‘high’ of the stock markets, the pitch of glorification and criticism
remain consistent without going into the red. This editorial is dedicated to
the drama of ‘budget season’ rather than details of ‘budget provisions’.
Precursor: A (tasteful) tradition
The season starts traditionally. The first
‘photo op’ is the Halwa making ceremony, done somewhere in a secret bunker of
the finance ministry. It marks the beginning of the quarantine period of those
officials, who after eating the delicious Halwa on a chilly Delhi day, choose
to remain in isolation till February 1. Two days before the UB, the national
Economic Survey is unveiled, building the tempo and setting the tone. Former
CEA, Kaushik Basu’s tweet sums up well: Reading India’s Economic Survey
2017-18 it is clear that the Survey is in very good shape. I wish I could say
the same for what it surveys. And then comes the ‘B’ Day. The FM enters the
parliament, personally carrying a (unbranded1) briefcase with (secret)
budget documents in it.
The Budget Speech
The budget speech is like the annual sacred
sermon by the highest financial pontiff. As I enter the office, a bit late
since I arrived in Mumbai the same day at dawn, people are ready with
headphones plugged into their computers waiting for the FM to begin.
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1 Emphasis is important considering recent
controversy over branded apparel worn by a politician.
these quintessential words balance and seal the budget speech.
With these words, every FM accentuates the government’s sole and focused
commitment towards the marginalised. The budget speech must also consider four
vital elements – Psychology, Politics, Economics and Strategy2. The
speech will get evaluated by the quality and proportion of each ingredient. Yet
after listening, a common citizen wonders as to why a recent report3 claimed that 73% new wealth created in last
one year went only to the richest 1%. Today the problem is not just poverty,
but inequality (the word that did not find place in the UB speech). The men who
feed us with their tilling and toil, why do they have to commit suicide: one
farmer every 40 minutes since last ten years?
Figures and Figures of Speech: Poetry and
Hindi
The speech not only contains large figures
in thousands of crores, but is also generous in use of figures of speech. FM’s
talk was delivered in English yet it was generously embellished with Hindi:
couplets, punch lines, quotes and Sanskrit to reduce monotony and serve
implicit purposes. Switchover to Hindi was often made at places where
commitment towards the under privileged needed accentuation. Memorable ones
from 2018 speech were: those wearing
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2 Inspired by Late Nani Palkhivala’s writings on
1981-82 Union Budget
3
By Oxfam. Amongst other things, the study found that it will take 941
years for a minimum wage worker in rural India to earn what the top paid
executive at a leading Indian garment firm earns in a year.
Ratings and Ranting
Post the FM’s
speech, ‘analysis’ race starts on channels and internet. While lesser mortals
require time to read and understand a document that is detailed and mammoth,
such as the country’s budget, the ‘experts’ from every field show up on
channels to give their ‘considered’ views. Some of it sounds like, talking about
the wrapper before seeing the wrapped gift.
The day is
abuzz with variety of sound bites, tweets and posts. The ruling party people go
‘Wah Wah’ with clichés like “Pro Farmer” “Path Breaking” “Historic” “Pro Poor”.
The opposition parties just use the thesaurus to find antonyms of those words
to call it: “Pro Rich”, “Anti Poor”, “Inflationary” etc.. Some channels attempt
to unleash a verbal WWE4 like match in their studios with people
‘debating’ and ranting. Rising volume and interruptions by the anchor/panellists
serve as substitutes for reason and respect. One TV channel put a link to rate
the budget while FM was still into his speech. 1500 people had even rated it
before the FM had completed his talk and the UB was not even uploaded on the
MoF website.
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4 World Wrestling Entertainment
On the other
hand, professionals start reading the fine print, for they know that Budget
Speech is not the Finance Bill and the devil is always hidden in the details.
While all this is going on, the number of ‘temporary economists’ spiral on
social media. Tweets and Posts glide hash tags (#) to prominence. Most
fascinating observations, are often those that state the obvious: “a good
budget, there was little room for tinkering indirect taxes due to GST being
dealt separately now.” My favourite comment came from an international rating
agency in 2017 (even the Economic Survey of India 2017 mentioned it for its
Poor Standards) – “India’s 2017-2018 budget illustrates the government’s
commitment to improving its fiscal performance over the medium term, despite the
hit to near-term growth from the demonetisation initiative” – stating the
obvious without conveying the expected meaning. Lastly, many industry bodies
find ways to praise the budget. Well, who wants to mess with power, which
continues to remain the largest litigant in India and even a significant
impediment to ease of doing business and to ease of living too!
And you wonder…
Yes, the journalists and businesses are ranking and debating, but the
common man is standing – in a line to get his share of benefits of growth. Yes,
India story cannot be talked down, but our complex nation needs a leap
to remain fit for future. Yes, budgets have come and budgets have gone, but
the bridge between intention of FMs and expectation of people is yet to be
completed: by impeccable execution! A big “Yes” to the budget, yet the “But”
remains!
Raman Jokhakar
Editor
