Budget 2022: “Revival of Nehruvian Era,” says Sanjay Baru

By Sonal Nain, 1 Feb 2022

The Union Budget 2022 establishes the framework for the next 25 years. According to Finance Minister Nirmala Sitharaman, our budget focuses on taking India from 75 to 100. “During Amrit Kaal, our government aims to achieve the Prime Minister’s vision for India at 100 outlined in his Independence Day address,” she added.

Political commentator Sanjay Baru explained to Mojo Story how the government’s proposed 25-year plan is resurfacing Nehru’s old economics. “They gave up 5-year plans, buried Nehru, and now we have a 25-year plan.” Private investments will be influenced by public investments and the public sector is now the primary driver of growth. And this marks the resurgence of the Nehruvian era. “The pandemic has jolted the government into action. I wish this had been the 2014 budget speech,” he added.

Baru further explained that the entire Washington consensus of what is known as neoliberal economics, which has ruled for several decades, was based on private investments driving prosperity. Due to private investments being hesitant, capital formation is still low. “The Indian private sector is waiting for the government to give the cue, and the government has given the signal by stating that it will invest more, that public investment will increase and that the fiscal deficit will remain elevated. Customs tariffs, for example, will be maintained, as will some domestic industry protection.”