In semi-election budget, expect some semi-revdis
- Swaminathan S Anklesaria Aiyar
- Jan 28, 2023, 19:55 IST IST
FM can increase the nominal value of benefits, but it will be less than the rate of inflation, resorting to what economists call money illusion
Will we have an election budget, replete with goodies for sundry vote banks? Since the next general election is due in May 2024, the budget in February that year will be an interim one, followed by a full budget after the election. So, this budget will be the last full one before the general election. Will it, therefore, be an election budget?
Very unlikely, for three reasons. First, giveaways have never been central to the approach of Narendra Modi, who has castigated them as ‘revdis’. Second, giveaways now will not stick in the public memory till the general election fifteen months later, and so will constitute wasted political ammunition. Third, even the interim 2024 budget can be stuffed with freebies if new developments make that politically necessary, so the BJP can keep this strategy in reserve.
Very unlikely, for three reasons. First, giveaways have never been central to the approach of Narendra Modi, who has castigated them as ‘revdis’. Second, giveaways now will not stick in the public memory till the general election fifteen months later, and so will constitute wasted political ammunition. Third, even the interim 2024 budget can be stuffed with freebies if new developments make that politically necessary, so the BJP can keep this strategy in reserve.
