"Brevity, Prudence": Anand Mahindra On Modi Government’s Interim Budget 2024

Industrialist Anand Mahindra commended the Modi government”s Interim Budget 2024, highlighting the virtues of brevity and prudence in fiscal planning. Reflecting on Finance Minister Nirmala Sitharaman“s succinct address, Mahindra emphasized the significance of managing expectations and maintaining fiscal discipline throughout the year, rather than solely relying on budget announcements for transformative policies.

Mahindra lauded the absence of populist measures typically associated with pre-election budgets, expressing hope for a sustained approach. He noted the budget”s adherence to fiscal deficit targets, citing it as a victory for prudence. Additionally, the lack of significant tax and duty changes was praised for providing stability and predictability to businesses.

A standout point for Mahindra was the achievement of a higher Tax to GDP ratio, a long-awaited development that strengthens the nation”s fiscal foundation. He urged the Finance Minister to amplify this success to bolster confidence among global investors.

With the budget”s emphasis on fiscal responsibility and stability, Mahindra expressed optimism for India”s economic prospects, emphasizing the need to focus on efficient execution of plans to propel the nation towards prosperity.

Here’s what Anand Mahindra wrote on X:

“For many years, I have been saying that we create too much drama around the budget and raise expectations of policy announcements to an unrealistically feverish pitch.

The Budget is NOT necessarily the occasion for transformational policy announcements. Those can, and should, happen throughout the year.

Just as it is for all private households, the Budget is an opportunity to plan our finances prudently and with fiscal rectitude.  The more we are focussed on living within our means and investing for a robust but sustainable future, the more confidence we will gain with global investors.

Which is why I was pleased with today’s budget.

—It was one of the shortest speeches—Brevity that is welcome and which communicates quiet confidence.

—No populistic measures were announced as has traditionally been expected in pre-election budgets. A welcome, and I hope, permanent approach!

—The fiscal deficit target was better than envisaged. Prudence scored a decisive victory!

—No major Tax and duty changes were announced. Businesses place a high value on stability and predictability and that was evident in this budget.

The really good news was the higher Tax to GDP ratio which has long been hoped for and which cements a strong foundation for fiscal flexibility and aggressive expenditure when it is needed.  The FM can and should trumpet this more loudly…

Now, we can focus on getting back to work and executing our plans efficiently while crossing the ‘Setu’ to a more prosperous India..”