03 August, 2021

Cacophony Of Mavens

Does Budget day matter anymore? Are the guys on TV playing us?

Illustration by Sorit
Cacophony Of Mavens

The big day has come and gone. All the excitement created a fortnight before the budget ended with its presentation. Debates over the budget (good or bad) will continue for some time to come—however, the euphoria is over. Why was there so much excitement? Were we expecting fireworks from the finance minister? Does the budget presentation really matter? It is the Anchoring Effect at work here. We are so anchored to the past that we still go on giving undue importance to the budget, something that actually lost its meaning with the liberalisation of the Indian economy in 1991.

The media created the availability bias. All the channels, business ones in particular, were geared up for Friday, February 26, 2010. You had posters of eminent personalities who would be giving their views on the budget. Then you had the ad by a business newspaper with “BUY, HOLD, SELL” strategies to be passed on by the so-called market experts. Newspapers are meant to give news. However, now they have started providing investment advice. We are...

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