Interview: The waning lustre of the Budget

Abstract

Policy decisions made through the year indicate that India seems to be focussing more on a long-term fiscal policy rather than the annual Budget. The recent Ratings Services Global Financial Literacy Survey conducted by Standard & Poor’s shows that India scored a low 24 per cent among the BRICS countries (Brazil, Russia, India, China and South Africa) against the average of 28 per cent and the highest of 42 per cent (South Africa). The study attempted to capture the percentage of ‘financially literate’ adults based on four concepts: risk diversification, inflation, interest calculation, and compounding.

The results are rather disappointing given the perception that Indians have a natural affinity for all things financial. Take, for instance, the Union Budget, which is a national obsession. The manner in which Indians intuitively understand the role of the Budget in their daily lives — from the excise duty on cigarettes to what items are exempted from service tax — is very difficult to explain to someone from outside the country. Read more at: https://www.thehindu.com/opinion/op-ed/the-waning-lustre-of-the-budget/article8098724.ece