Munich Personal RePEc Archive

The Union Budget 2020-21: A mixed bag of cheers and tears

Tandon, Anjali (2020): The Union Budget 2020-21: A mixed bag of cheers and tears. Published in: Journal of Business Thought , Vol. 11, (2020): pp. 29-39.

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Abstract

The Budget 2020-21 can be considered as transitional in nature as it seems to direct money flows to business through reforms on corporate tax. Apparently, the government is commanding a model of investment driven economic growth for long-term sustainability. However, under current crisis with regard to jobs, unemployment, demand depression and low consumption, the economy requires immediate stimulus package, which is absent in the budget. There seems to be an attempt to energise consumption through tax benefits on dis-saving. This however dis-regards the link between savings and consumption, as the former are used to finance consumer durables such as cars, electronics and real estate purchase. The importance of savings cannot be overstated in an economy where there are no provisions for universal healthcare, social security, and unemployment allowances.

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