Mr. Arun Jaitley has had six benefits this year while presenting the union budget 2016. The benefits collectively bless India with 40 to 50 thousand crore rupees. That is 4,00,00,00,00,000 rupees. Let’s look into these benefits. Despite of fall in the GDP growth rate of Brazil, Russia and South Africa, India has not fallen into the pit. But don’t worry, an Indian family, ‘The three Gupta brothers’ is the reason for destruction of South Africa. They solely control the regions leader and are the cause of widespread corruption. Hence the Indian dignity is preserved. China a member of BRICs has also declared softer growth targets due to slowing down of economy. China used to have GDP growth rates of 14% per annum, Indians have never seen such days, but fortunately it is now working in our favor.
As far as international commodities are concerned, their cost scene is truly benign. The Indian companies are doing very well in some sectors and the size of domestic market and its demand is so big that the global slowdown looks less threatening. But the major factor which has acted just like a miracle for Indians is the drop in crude oil prices due to emergence of new resources for making energy like shale gas.
We can conclude that global growth has fallen, our growth has increased and price of commodities has fallen down. India is therefore in a sweet spot.
Let us talk about statistics. They are actually not bad #shocking. The GDP growth rate is 7.6%. The monsoon deficit was 13% for two consecutive years YET good growth rates were achieved. Forex reserves cost $350 billion. Funds given to states have been increased by 55%. Even after this the plan expenditure 2015-16 revised estimate or RE went up. This is very rare. It is a clear proof that the fiscal management is excellent.
Now enough technicalities. My favorite part is the tight slap Modi Sarkar has given to Rahul Gandhi. He and his congress which means his mother, have constantly said,” Modi Sarkar suit boot ki Sarkar hein“ This means that NDA doesn’t care about the poor and is busy in crony capitalism. Rahul Gandhi could never have dreamt that Mr. Modi would actually listen to the criticism and actually do something for the poor. No one would have dreamt that politics would have driven this budget. In any other case this would have been truly disastrous but in this case I must say, well done. Modi Ji has taken the only criticism the opposition had. By establishing nine pillars Modi Sarkar has revolutionized the fate of India. Provided that people work honestly and respect his intentions. The nine pillars include (a)agriculture and farmer welfare, (b) rural sector,(c) social sector,(d) education, skill, job creation,(e) infrastructure, (f)financial sector reforms, (g)ease of doing business and better governance, (h)tax reforms, my favorite (g)fiscal discipline.
It is very sad that people in India criticize without understanding the intentions behind actions.
Mr. Modi has allotted huge amount of money to make sure all houses have LPG. What normal people will think is that Modi is giving our money to the poor, our hard earned money. Let me tell you only 5% people in India pay income tax. So out of 100 people who say Mr. Modi is giving our money to the poor, assume only 10 of them actually pay any tax, rest are protesting to get on T.V. Now back to the LPG. The real reason for installing LPG in rural households is to get rid of the ancient chulah. The ancient chulah produces PM 2.5 which is one of the most dangerous substances for our lungs. These particles can’t be blocked by our nose and hence damage our lungs. The government pays hundreds and thousands of crores for healthcare of the poor. In the long run the installation of LPG can prevent lung damage and save crores of rupees which will cancel out the cost of installation of LPG. Other than that the huge forest degradation caused by the poor living in rural areas due to it being the major source of fuel for the ancient chullah causes a loss of thousands of crores to the forest department. This is the amount of thought put into each and every scheme of this year’s budget. This is the only budget ever made in India which will help the country in the long run and does not act like a bandage on a dinosaur. I will be talking about each of the nine pillars in the next blog post, discussing the thought and intention behind each one of them, the benefits we will receive in the future and finally predictions for next budget which is very exciting. (Hint: The next budget will be the budget before elections, so the big guns are still in Modi Ji’s pocket.)This is the reason why I wrote about Union Budget.