Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
3. There was hope that the recently proposed Budget would increase allocations in various sectors, and in turn would trigger demand but the numbers do not seem promising, Give your opinion and analyse. (250 words)
Reference: Indian Express
Why this question:
The 2020 Budget was presented against the background of slowing economy, poor investment climate, declining consumption demand and stagnant exports. Thus the question aims to analyse if the Budget proposed is promising on these fronts or not.
Key demand of the question:
The answer must discuss critically the Budget proposals and in what way they lack promises in terms triggering demand in the economy.
Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
Briefly explain the current case of the Budget proposals.
- The 2020 Budget was presented against the background of slowing economy, poor investment climate, declining consumption demand and stagnant exports.
- The steady deceleration in growth, which registered at 4.5 per cent in the second quarter of the current fiscal — the lowest in the last 26 quarters — presented a challenge as well as an opportunity.
- Monetary policy, by reducing the repo rate by 135 basis points since January last year, has traversed quite a distance.
Discuss what the expectations were from the budget and why the budget somewhere failed to touch upon those points.
Conclude that it seems the wait for a rescue of the slowing economy has become longer, however proposals and policies need to be steered in the right direction to bring the economy back on wheels.