26 September, 2020

Modinomics On A Roll

The PM is all set to turn the budget into a mere accounting statement, starting 2017

Experiments With Power
The ­defining ­feature of Modinomics is experimentation
Photogaph by Jitender Gupta
Modinomics On A Roll

Critics haven’t stopped taking potshots at the Modi government over the crash demonetisation of Rs 500 and Rs 1,000 notes amounting to a total of Rs 14 lakh crore. Those who support it as a bold move are fretting too. It’s been untidy: queues outside banks, cancelled weddings, and cash-strapped small traders, farmers and daily-wage earners. But here’s the rub: Prime Minister Narendra Modi will halt at nothing to completely reorganise Asia’s third-largest economy. There’s a lot more structural reforms lined up; expect the full spectrum to take effect by early next year.   

To begin with, the Modi government has advanced the Union Budget 2017-18 by a month to February 1—a precursor to a more fundamental change being mulled: merging of the country’s April-to-March fiscal year with the calendar year. Officials say one advantage of a merged calendar is to make the budget monsoon-proof. A winter budget that comes after the monsoon months makes sense as weather shocks, which usually mean unexpected government spending due to...



To read this piece, and more such stories in India's most exciting and exacting magazine, plus get access to our 25-year archives goldmine, please subscribe.

Latest Magazine

October 05, 2020

other articles from the issue

articles from the previous issue

Other magazine section