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Why is the Budget losing its significance?

Sulagna D
·2-min read

The Union Budget contains big numbers, and every year; citizens eagerly wait to hear the plans the government laid out for them. The numbers on the sheet significantly influence the schemes called the Yojanas; the constructions that will unfold throughout the year. The different sectors' economic growth, tax collection and newer policies also broadly reflect the Union Budget plan.

Wrong estimations

The main reason that the budget fails to create a strong impact is wrong forecasts and estimates. The Union Government is an expert at underestimating the tier expenditure but overestimating the profits that 'might or might not' flow in. A healthy balance is lost, so the budget doesn't create a realistic estimation and figures.

Also read: Budget 2021: Will the FM provide relief to senior citizens this time?

GDP dip

Despite the extensive planning, there is a clear drop in the Gross Domestic Product. The budget plan must create a smart balance in both surplus and deficit, but it fails to do either. Investors are slowly losing their bets, and their trust is also wavering when it comes to lending their bucks.

Also read: Coming soon! Airport-like, world class railway stations

Failed resource management

The budget improves the management, distribution and availability of resources. However, this scenario seems like 'dream unfulfilled' because many marginal communities and remote areas still struggle to get necessities. The resources are also exploited by the 'rich', there is significant wastage, and improper low tier management is causing distrust in the government's strategies.

No economic balance

Suppose that one of the main reasons for the implementation of the budget is to maintain poor-rich balance. This prevents social disparity and exclusion. But that doesn't seem to happen. The numbers do excite the classes, but nothing significant seems to come out of the layout.

Read more: Meet the team behind the Budget

COVID atmosphere

The economic instability is high because of the pandemic's spread. This year's estimate should be precise, on-point and quick measures should come up to rebuild the crumbled empire. The economy will see a 42 year low after the cessation of enterprises, public sectors and public functions in the wake of COVID -19. A wrong estimation will be very insignificant, and there is no point in wasting time on elaborate discussions.

The Budget report will be shaped by 1st April every year, and the term will end on 31st March the next year. There were several budgets, plans, schemes, most of them that didn't see the light of the day while a few did leave a positive impact on people's lives. Nevertheless, the Union budget report is only doing 20% of what it is capable of.