NEW DELHI // Prime minister Narendra Modi's government used its first budget to tackle the national deficit and lacklustre economy, but could not resist playing safe and including a host of populist disbursements.
Arun Jaitley, the finance minister, presented the 18 trillion rupee (Dh1.1 trillion) budget on Thursday in a speech that lasted for more than two hours.
Admitting that the country faced a "challenging situation" – after two consecutive years of growth below 5 per cent and a deficit of 4.5 per cent – Mr Jaitley said the government needed more time to sort through the problems it faced.
"It would not be wise to expect everything that can be done or must be done to be in the first budget presented within 45 days of the formation of this government," he said.
"The budget is a new ray of hope for the poor and downtrodden sections of society," Mr Modi said, adding that it would revive India's "moribund economy".
Mr Modi campaigned on promises of economic reforms, bold cuts in subsidies and welfare, and the easing of foreign investment rules. But Mr Jaitley's budget carried only faint hints of that economic ideology, said John Samuel Raja, a co-founder of How India Lives, a firm that analyses public data.
"The dramatic measures that Modi talked about, and that many people expected, were missing," Mr Raja told The National. "Maybe they've realised the limitations of actually governing, which is why they've taken the safe route of making incremental changes.
"But if there was ever a time for boldness, it was in this budget. Two years down the line, the government will be tied down to other political realities. Now it's coming fresh off a huge mandate."
Among the most significant aspects of the budget was its reluctance to slash spending on welfare and subsidies, he added.
Although Mr Jaitley proposed "to overhaul the subsidy regime, including food and petroleum subsidies", he did not provide details on how changes would be made.
In fact, the total payment towards subsidies was increased by 60 billion rupees in this budget, compared to the previous year.
Instead, Mr Jaitley only outlined an idea to set up a government commission to scrutinise state expenditure more closely.
"We cannot be oblivious of the fact that there is a large population of this country which is below the poverty line," Mr Jaitley said. "We have to ensure that our anti-poverty programmes are well targeted."
Individual taxpayers did not receive the kind of massive relief that many expected. Tax slabs were slightly tweaked to raise the exemption threshold to 250,000 rupees, and the upper limits on other tax exemptions were raised as well. But these small changes, Mr Raja said, would not subtract much from the government's revenue.
The hallmark of Mr Modi's economic planning seemed to be "small initiatives over a variety of fronts, keep the pressure on, and occasionally go for the big initiative", said Subir Gokarn, director of research at the Brookings India think tank.
Mr Jaitley has proposed plugging the deficit by making India's business environment more welcoming, hoping that it will spur investment and result in renewed economic growth "of 7-8 per cent or above within the next 3-4 years". The government also plans to sell parts of its stakes in public sector companies, hoping to raise 2.4 trillion rupees by 2018.
In this way, he hopes to drag down the government's fiscal deficit to 4.1 per cent by the end of this financial year, 3.6 per cent by 2015-16, and 3 per cent by 2016-17.
Avoiding the touchy issue of allowing foreign investment in the retail sector, which critics claim will put thousands of neighbourhood grocers out of business, Mr Jaitley instead permitted Indian defence manufacturing and insurance companies to sell stakes of up to 49 per cent to foreign investors, up from the 26 per cent permitted currently.
Mr Jaitley also announced 28 programmes with budgets of a billion rupees each, including a television channel to broadcast real-time information to farmers, a study to examine the feasibility of interlinking India's rivers, a national war memorial, a sports university in the north-eastern state of Manipur, and a fund to educate young girls.
ssubramanian@thenational.ae
COMPANY%20PROFILE
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UAE currency: the story behind the money in your pockets
No.6 Collaborations Project
Ed Sheeran (Atlantic)
PROFILE
Name: Enhance Fitness
Year started: 2018
Based: UAE
Employees: 200
Amount raised: $3m
Investors: Global Ventures and angel investors
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
The specs: 2018 Audi RS5
Price, base: Dh359,200
Engine: 2.9L twin-turbo V6
Transmission: Eight-speed automatic
Power: 450hp at 5,700rpm
Torque: 600Nm at 1,900rpm
Fuel economy, combined: 8.7L / 100km
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
UAE squad
Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
HAJJAN
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Brief scores:
Arsenal 4
Xhaka 25', Lacazette 55', Ramsey 79', Aubameyang 83'
Fulham 1
Kamara 69'
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
RACE CARD
6.30pm: Madjani Stakes Group 2 (PA) Dh97,500 (Dirt) 1,900m
7.05pm: Maiden (TB) Dh82,500 (D) 1,400m
7.40pm: Maiden (TB) Dh82,500 (D) 1,600m
8.15pm: Handicap (TB) Dh87,500 (D) 2,200m
8.50pm: Dubai Creek Mile Listed (TB) Dh132,500 (D) 1,600m
9.25pm: Conditions (TB) Dh120,000 (D) 1,900m
10pm: Handicap (TB) Dh92,500 (D) 1,400m
