12 reasons why Modi govt’s first budget could be like Chidu’s in 2004

governments change, priorities change. However, Union budgets prepared immediately after a general election tend to be large on announcements about change rather than real changes in allocations and priorities. This is because there is very little time between election results and budget day to be able to comprehensively change the contours completely.

This time, the election results came on 16 May, and the formation of the central government took another 10 days as this was the first time a sitting state Chief Minister was elected Prime Minister. The delays related to the need for Narendra Modi to hand over power in Gujarat smoothly before moving to Delhi.

Moreover, when the political order changes, as in this general election, the new ministers would not have had the time to familiarise themselves with their own ministries before dealing with the finance ministry on the budget.

The net result is the previous interim budget tends to be the guiding document, with the big changes being largely cosmetic in nature or about things to come in future.

 

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