View: What's in Modi's Budget for 1.3 billion Indians? Precious little


An all-out push to revive its sputtering economy is not within India's reach. Instead of spending meager local resources to rebuild faltering demand, New Delhi is betting that world growth this year will be down in the dumps — and that will make India appear attractive to foreigners even when it really isn't.


The budget unveiled by Prime Minister Narendra Modi's go nment Saturday left virtually every domestic constituency unhappy. My interpretation? Luring overseas investors to high-yielding Indian assets amid a global coronavirus scare is the preferred strategy.



Under this blueprint, sovereign wealth funds such as Singapore's GIC Pte and Abu Dhabi Investment Authority will pay no taxes on what they earn from Indian infrastructure investment made before 2024, even though domestic investors were miffed the budget didn't scrap their long-term capital gains tax.


Financiers in Mumbai are upset that the budget did little to clear the jammed arteries of credit. But yield-starved overseas investors will get full access to parts of the rupee-denominated Indian go nment bond market, where 10-year yields are a juicy 6.6%. The overseas participation ceiling on corporate bonds, currently limited to 9%, will rise to 15%. A Saudi Aramco-style initial public offering of the Life Insurance Corp., a state-owned former monopoly with $434 billion in assets, would add to Wall Street banks' bragging rights.


The locals will have to sacrifice, though. Funding has been cut for a rural job guarantee program even as widespread agrarian distress weighs on demand for everything from toothpaste to biscuits. The urban middle class got thrown a carrot of lower tax rates, but it's only for those who give up existing exemptions. Most people won't. Dividend earners will, in fact, pay higher taxes as well as a levy — albeit one they can offset against their tax bill — on sending money overseas for education or holidays.


Except for a renewed commitment to affordable housing, Modi's go nment provided little demand stimulus. Existing bottlenecks remain, including a large overhang of unfinished homes. A bold rescue of troubled shadow banks, which are clogging up credit, isn't in the cards. The planned 10.85 trillion rupees ($152 billion) of capital expenditure is expected to grow by just 2.4%.


Break it down, and the Rs 6.73 lakh crore outlay of public-sector companies will shrink by 5%. The remaining Rs 4.12 lakh crore of capital spending funded out of budgetary resources will grow, but 5% of it will go to propping up dying state-run telecom companies. With the private sector refusing to invest, such poor-quality public expenditure won't pull up growth in nominal gross domestic product — which is what matters for tax collections — to the targeted 10% rate, from a four-decade low of 7.5% in the fiscal year that ends March 31.


India's fiscal situation is parlous. I have previously argued that the country should attract patient capital from developed countries, because its domestic balance sheets — financial, corporate, go nment and households — are simultaneously stretched. Meanwhile, global pension and sovereign funds are staring at chronically low interest rates, a problem that could worsen if the coronavirus plays havoc with growth in an over-leveraged world.



译文来源:三泰虎      http://www.santaihu.com/49273.html     译者:Joyceliu 

Brij Singh

Well written article and comments. This budget is probably made in the dreams where no realities have been considered. The tax paying middle class has been taken for a ride. In a country where there s no social security system , this budget is like a doomsday.




No benefits to Senior Citizens and Super Senior Citizens who do not get pension. Rs. 9000 cr provision for Senior Citizens in the budget may not benefit directly these. Though the Givt says the policy is to put more cash in the hands of public, the cash in the hands of these people is coming down day-by-day as interest rates coming down which solely & wholly source of income.




Very true. Neither Modi nor his ministers understand this problem or care. For 5 years their tax policies are to tax the taxed. On top they have reduced job opportunities and now unemployment is the highest. Congress was sensitive to all this and did not tax dividends etc that are life savers for retired and not having any pension.



Suresh Chandani

Once again, a total disappointing budget. The situation will continue to be grim as usual. Ignoring sectors that create jobs and wealth won't encourage any major Indian investments in the ecosystem.



Shadi Katyal

Why we are unable to even understand that what has Modi done for the nation for past 6 years. No one talks of lack of any investments or jobs but expect a budget with growth incentive.




" You Indians think u are so smart , is it ? We view every Indian as a criminal, someone who needs to be disciplined . As long as we are in power u do as we say, not what u fancy. "



Biju Pols

Modi looted the common man with high TAX on Petrol, Diesel. ..




Come April, Banking sector will be the first victim followed by anarchy thereafter......



Godfather Senior

Report from Bloomberg!? And on an Indian domestic matters! Well, it is a branch of Congress Party's HQ that is known to all ;-)

彭博的报告! ?还是有关于印度的国内事务的!嗯,这是众所周知的国大党总部的一个分支;-)



most important point is war with pakistan .War with china wont happen because modi is already sold to them way back in 2014.With entire 6 yrs of tax spent and nothing to show for in military,india is in trouble.Indian military can run efficient smuggling operations in north east-near bangla border-pakistan border but it can not win a sustained war with pakistan or even bangladesh.Our soldiers are brave but top echelon is corrupt




Modi is doing what he has been ordered to do by foreign advisors.He is selling nation to indian and foreign corporations and he might even leave india then.



Aziz Siddiqui

Let's stop believing in Feku and his 5 Trillions economy by 2025....



Harivadan Dalal

Writer and Bloomberg is ANTI-INDIA. It is well known fact. And no body pays attention to their article.As regard to budget, there are many positives. New system of personal income tax will save tons of stationary, time and effort in collection, submission,verification of documents at different levels. Just think it national saving.It is media, who has wasted interest, spreads lies to common man.By developing infrastructure(roads, railways hospitals etc.) common man will benefit. Rich people already have all facilities at their disposal.




Very pessimistic view!!

很悲观的看法! !


Satish Jay

I think the budget had couple of misses like tax cuts for SMB, some targeted incentives for automobiles and some tax cuts for higher slabs as well. However, it is good to see that they have focused on fundamentals like clean drinking water. The key is implementation of various plans. The govt may provide more incentives closer to elections.



Rajesh Kumar

Economy in doldrums and the biggest step taken is clean water project. When are the next elections?




Fekunomics is total failure.



Hari Krishna Johri

The surprising there is nobody in entire opposition to challenge him.It's shocking why no other leader is not coming forward to unseat him ? Is there no other good leader in whole country ??




Feku tries to be a super hero, but has turned out be a super flop. The biggest problem is people are looking a single person to overthrow him. But the truth is good governance is not a individual's domain, it is from collective wisdom of a group. As a group congress is 10 times better than BJP. They have proven time and again that they can govern better and manage economy. Dr MMS and PVN Rao, handled economy in the most difficult times with bare majority. But this idiotic Modi had big majority and most of time oil prices were low and they made a huge collection by keeping the taxes on oil high. Still they have taken India to a mess. Who spends 1.25 lakh crore on ganga cleaning? It is a river, just stop the pollution the river will clean it self. But BJP wants people to pollute so that they can spend 1.25 L crore of tax payer's money on cleaning 1 river.

莫迪试图成为一个超级英雄,但结果却一败涂地。最大的问题是,人们在寻找一个人来推翻他。但事实是,良好的治理不是一个人的事,而是一个群体的集体智慧。作为一个团体,国大党比人民党强10倍。他们一次又一次地证明,他们能够更好地管理和管理经济。曼莫汉辛格和PVN 拉奥博士在最困难的时期,以勉强过半的席位处理了经济问题。但这个白痴莫迪拥有多数席位的支持,大多数时候油价都很低,他们通过提高石油税来征收巨额税款。但他们还是把印度搞得一团糟。谁花了1.25万亿清洁恒河?这是河,只要停止污染,这条河就会自我清洁。但是人民党希望人们污染环境,这样他们就可以花1.25亿纳税人的钱来清洁河流。


Puthumbaka Raghu Kumar

Locals have been sacrificed to benefit Corporates and FPIs. With massive majority in Parliament this Government is thinking that they can do anything and get away with it.



Raghuraj Thakur

modi is best prime minister of world



Anand V

Modi should go for waiver in GST on industrial buildings and add industrial building along with residential building as an option for saving long term capital gains........



Sheelukkk Kumar

At least corporates share dividend income is taxed heavily who holds proprietary interest in companies they hold is not bad at all. That's why these rich people are not able to digest.



Srinivasan Gopalan

Can we scoop out more than what is available.? The theme is fine. The two important things : easy of doing business without co ption and quick justice delivery if ensured India will do fantastically well. Slowly the ethos is getting changed because of BJP . The harm done for 7 decades are gargantuan and though cannot be undone easily a positive approach is taken by BJP is the need of the hour.



Rajesh Kumar

As of now, not even one up vote for the silly comment. The current situation is so bad for the whole economy that people will be happy to have the UPA back.



Sunder Swami

If only we had an intelligent opposition. Modi is only there because Congress become too corrupt and arrogant. Unfortunately, Congress still remains incompetent and arrogant. For India to move forward, Congress must reform. Well, until then, Modi will keep getting votes. Like it or not!!!!



Dipanjan Datta

Absolutely!!! With Nehru-Gandhi Parivaar at the helm of the party will never make it a viable alternative. Had there been some other competent leader at the top, NaMo would have been history by now.

绝对没错! ! !有尼赫鲁-甘地•帕利瓦拉掌舵,该党将永远也无法成为替代的对象。如果高层有其他有能力的领导人,那么现在莫迪早都已经成为历史了。


Bharat Sharma

Andy Mukherjee is hurt that his White Christian Masters like Jeff Bezos were not put on pedestal. Well Andy can prostrate in front of his local White skinned master - Sonia.It is clear from series of Andy's articles, he is a shill for the realtor / NBFC lobby. He would prefer that Modi throws good money after bad, because his Indian masters can't continue looting poor real estate buyers.

安迪•穆克吉很伤心,因为他的白人基督教主子杰夫•贝佐斯没有被捧上神坛。安迪可以在他的白人主子——索尼娅面前卑躬屈膝。从安迪的一系列文章中可以明显看出,他是房地产经纪人/ NBFC游说团的托儿。他更希望莫迪花钱越多越好,因为他的印度主人无法继续掠夺贫穷的房地产买家了。


Hemant Pisat

The budget gave a miss to address GST, auto & real estate industry, the most job creating by any means. Well the go nment will realise the same maybe after few months when the upstick would be timid. It's unfortunate that FM misses the opportunities to address the downturn steadfastly.



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