An intricate link that connects Budgets and politics
The process of budgeting in India is intertwined with politics and electioneering. Budgets in India have historically included announcements for target states as well as specific voter groups
PM Narendra Modi with FM Nirmala Sitharaman (Image: PTI)
On February 1, Finance Minister Nirmala Sitharaman will be presenting the third Budget of Modi 2.O and the first since COVID-19 struck. Her biggest challenge will be to find a balance between growth and fiscal discipline. This financial year, India is likely to record its fifth recession since Independence.
This is also a year when elections to four states and one union territory are slated in the second quarter. The Bharatiya Janata Party (BJP) is the incumbent in one state (Assam) and principal challenger in another (West Bengal).