Budget Analysis

Budget Analysis 

One very important point which I want to point to all .

Most Indians were annoyed when petrol prices did not decrease in same proportion when the crude oil prices reduced in international market ( 2017-18) .

In 2017-18 government borrowing was 45073 crore whereas in 2018-19 budget it was 4621 crore and revised estimate is 4227 crore for 2018-19 . For 2019-29 it is fixed to 4731 crore . Huge reduction in government borrowing

Government borrows to meet the fiscal deficit and rising expenditure . Huge reduction in borrowing means government has enough surplus to meet its expenditure in year 2018-19 and 2019-20 .

We all know we borrow only when need and no other option left . Borrowing comes with a cost ( to pay interest ) . Anyone who borrows more is under more strain than anyone who borrows less.

Had government passed on the oil price reduction benefit in same proportion to consumers during low oil price time then they would have been left with less surplus and borrowing trend would have continued as 2017-18 .

More borrowing by government leads to increase in interest rate particularly in economy which has rising inflationary trend . Inflation comes when demand ( improving living standard ) exceeds supply ( actual production ) . Rising interest rate means higher home loan EMI , products become costlier and we have lesser money in hand to spend and enjoy life.

But this government has acted prudently . Now inflation is under control i.e no price rise, nil tax for income up to 5 lakh . Now up to 70 % population has more money to spend and enjoy life .

IS THIS ACCHE DIN OR NOT . JUST THINK LOGICALLY .