The Telegraph puts five questions to students of some of the country’s top institutions

➊ How do you rate the budget on a scale of 1-10?

(1) 7.5

➋ What is the budget’s big idea?

(2) The budget is focused on long-term growth in capital infrastructure and fewer handouts aimed at employment generation. Increased transparency by highlighting the fiscal deficit of 9.5% in the previous year. Push to infrastructure is another big idea.

➌ Where has the FM scored?

(3) The FM has scored with her push to core industries, particularly infrastructure and textiles. The vehicle scrappage policy has the ability to revive the automobile segment and setting up of the Development Financial Institution for easy lending is a welcome move.

➍ Where has she failed?

(4) The budget has failed when it comes to revival of tourism. It has hardly anything for the agriculture sector, especially in the light of the farmers’ protests.
State resources have been constrained and the expansionary fiscal move may lead to higher inflation.

➎ Does the budget have enough measures to kick-start the economy in a pandemic year?

(5) If the budget is implemented well, it has enough measures to kick-start the economy — by increasing employment and subsequently demand through infrastructure projects. This year’s budget is focused on long-term goals with a cumulative effect down the line. The equity markets perceive the budget to be bullish. Production-linked incentive schemes (a great push to the manufacturing sector) and calibrations in customs duty (lowering of prices of inputs such as iron, steel) are also positive for the industry.

➊ How do you rate the budget on a scale of 1-10?

(1) 6.25

➋ What is the budget’s big idea?

(2) This is a long-term growth-focused budget, with a push towards infrastructure development through increased capital expenditure to the tune of Rs 5.54 lakh crore over 2021-22. There is also a definite focus on much-needed human capital development, with improvement in public healthcare spending over the previous decade, largely driven by allocations to Ayushman Bharat and PMSSY.

➌ Where has the FM scored?

(3) With an ambitious target to reduce the fiscal deficit to 6.8% of the GDP by March 2022, the budget takes a medium-to-long term growth focus in a bid to increase government spending in infrastructure. Attracting foreign capital in insurance by increasing the FDI limit from 49% to 74% is another green flag.

➍ Where has she failed?

(4) It misses addressing some core issues like skilling the labour force of the country for gainful employment to drive the success of Make in India and AatmaNirbhar Bharat missions. Agriculture does not have much to gain; further, the middle-class has little to take away due to the absence of any direct tax benefits or other policy interventions.

➎ Does the budget have enough measures to kick-start the economy in a pandemic year?

(5) The budget promises a lot given that it was “expected to be like no other” but it does not include any clear or well laid-out measures for immediate demand revival, such as tax benefits or direct transfers to support disposable incomes and drive discretionary spending.

➊ How do you rate the budget on a scale of 1-10?

(1) 7.5

➋ What is the budget’s big idea?

(2) The budget has been structurally well-planned with an underlying emphasis on AatmaNirbhar Bharat. The budget has its priorities set: Health, infrastructure, and the financial sector, and the FM didn’t fail to hit the bullseye, which the economy needed. The government has been courageous in its spending.

➌ Where has the FM scored?

(3) The stress on reforms, particularly monetisation of assets and a boost to the insurance sector, will significantly support the financial sector and will act as a stimulus. The focus on infrastructure and healthcare is commendable. The government has initiated positive measures to ease direct tax compliances.

➍ Where has she failed?

(4) The budget might have failed to provide adequate support to the rural economy, with a miss to the farmers. The impact of agriculture and infrastructure development cess on prices and consumption will be something to evaluate. Achieving the fiscal deficit targets in the coming years will be a challenge.

➎ Does the budget have enough measures to kick-start the economy in a pandemic year?

(5) Equity markets have enough reasons to cheer. The budget has suggested measures to bring the finance sector back on track. Also, incentives to start-ups, infrastructure companies & MSMEs will provide much-needed support.

Overall, the budget has taken a positive stride to bring the economy back on track.

➊ How do you rate the budget on a scale of 1-10?

(1) 7

➊ How do you rate the budget on a scale of 1-10?

2) Increased investment in health and physical infrastructure to lead sustainable and inclusive growth, based on ideals of self-reliance.

(3) Long-term vision of investment-led growth. With an estimated capital expenditure outlay of Rs 5.54 lakh crore, accounting for 16% of the budget estimate, the continued emphasis on creation of physical capital and infrastructure is a welcome move. Direct stimulus to small companies and start-ups can be expected to boost industrial output. Strong commitment has been signalled through new agencies like the Development Financial Institution, Asset Reconstruction Company and Asset Management Company to clean up banks’ books.

➍ Where has she failed?

(4) To finance the fiscal deficit and increase its revenue, the government has opted for disinvestment and greater import duties on select commodities instead of widening the tax base. The budget does not acknowledge the leaks identified in welfare and education. While mentioning tackling of pollution is a refreshing change, one is sceptical of its
allocation and utilisation.

➎ Does the budget have enough measures to kick-start the economy in a pandemic year?

(5) In the light of the Covid-19 pandemic, the budget’s focus on healthcare, including the Swasth Bharat Yojana and Mission Poshan 2.0, are steps in the right direction.