The Budget of 2025 has been a great step towards a good budget, but more needs to be done to make it a Dream Budget, which should deal with issues as given below:

Populism

Deficits matter. We need to live within our means even as we strive to increase our growth and prosperity.

We look to our leaders not to waste our resources on purely populist measures, even as electoral dynamics encourage candidates/politicians to promise to provide people their requirements for free or on greatly subsidized terms. Such subsidies condition people to seek to grab whatever they can for themselves, just because they can and then demand even more.

As Michael Lewis writes in ‘Bloomberg’, about populist minded politicians: “… they sacrifice long term interest for short term rewards without regard to the larger social and economic consequences.” (e.g.: Agri loan write-off instead of loan re-schedulement, which would have been more effective and which would have also, been fairer to those farmers who had actually repaid their loans). Subsidies only serve to benefit small special interest groups with the political clout to exploit others.

It is worth noting that Japan, a country extensively damaged during WW- II and the target of two nuclear weapons has rebuilt itself into an economic giant without any social subsidies.

To avoid falling into such a trap it is necessary that ‘free’ is promised only on essential items and only to those who really cannot afford to pay, and that too for a short period, say at a time of disaster or acute distress.

From others, collect according to their ability to pay, allowing the middle 80 percent to pay as per actual costs and the top 10 percent to pay a small extra which can then subsidize the lowest 10 percent, Direct cash transfers, food stamps and school vouchers are perhaps the best way to subsidize the needy. All subsidies should be based on realistic and transparent costing and be designed to, within limited time, self-reduce to zero. Our present fertilizer, fuel and gas subsidies are not so and hence, require reassessment.

Other things that lead to destroying the Budget are the ever-increasing bills arising from the government employees – wages and benefits, pensions and health care. Being in critical sectors and also, being very strongly organized, such employees exert pressure way beyond their actual numbers.

A Government job should NOT be a sinecure for lifetime employment and benefits. All such employees should have their performance measured at regular intervals; say every year or every five years and only then their tenure extended on satisfactory performance. Those that don’t meet the criterion for extension should be given gratuity or VRS and sent home (See – ‘Bureaucrats-Selection & Development’).

However, today, there are large sections of our Society that need special onetime consideration;

1. Farmers (See – “Agricultural Reforms – Krishi Jagruti Scheme – Own your Farm as a Share Holder”).
2. Girl children of poor families – (See – ‘Girl Child- Protecting &Improving her lot while also, encouraging Infrastructure Projects’).
3. The very poor who have no stake in the concept of India (See – ‘GARIBI! HATAO! -A Practical and Actionable Way!’).

These sectors need immediate and one-time assistance, without overly calling on the scarce revenues of the Government. The schemes suggested above show how this can be done.

The Budget should also, display a better understanding of the following and lay down policies for the same.

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