Government Budget

Government Budget

The concept of a government budget is a fundamental part of economic policy, detailing how a nation plans to collect revenue and allocate funds across various sectors, including infrastructure, healthcare, education, defense, and welfare programs. The budget aims to ensure that the economy runs smoothly, stimulates growth, and addresses the needs of various sections of society, particularly the middle class and the marginalized. However, despite budgets being presented annually across the globe, particularly in democratic countries, a large section of the population, especially the middle class, often remains dissatisfied.

Why is the Middle Class Unhappy with the Budget?

The middle class plays a pivotal role in any economy, often being the backbone of tax revenue and a major consumer base. However, they often feel neglected or burdened by the policies outlined in the budget for several reasons:

1. High Tax Burden: Despite the increase in salaries and benefits for the wealthy or corporate sectors, the middle class often ends up bearing the brunt of direct and indirect taxes. The personal income tax structure can be harsh on the middle class, especially if it is not adjusted for inflation. Additionally, indirect taxes such as GST (Goods and Services Tax) affect the prices of goods and services across the board, leading to a rise in the cost of living without a proportional rise in wages.

2. Lack of Immediate Relief: While the budget often includes long-term plans, tax exemptions, and other financial schemes, they do not always translate into immediate relief. Many people in the middle class feel the impact of a rising cost of living—such as high housing prices, expensive healthcare, and education fees—without seeing tangible benefits in the budget.

3. Failure to Address Core Issues: The budget often fails to address the systemic problems faced by the middle class. For example, inadequate social security, the burden of high medical expenses, and increasing prices of essential goods and services. While the budget may promise reforms, they are often not sufficient or actionable enough to bring about real change for the middle class.

Involvement of Experts and the "Tricks" in the Budget

The involvement of financial experts, economists, and policy advisors is crucial to formulating a budget. However, there is often criticism that their insights are too technical and distant from the daily lives of ordinary citizens. As a result, policies introduced may seem complex or seem to cater more to corporate interests rather than addressing the needs of common people.

1. Corporate Welfare: In many instances, the budget may focus heavily on corporate tax cuts or other incentives aimed at boosting big businesses, foreign investment, and industrial growth. While these policies can contribute to national economic growth, they may not provide immediate benefits to the average citizen. The middle class often feels that their tax contributions are being used to benefit larger entities rather than being reinvested into public welfare programs or reducing the cost of living.

2. Subtle "Tricks" to Conceal Real Issues: Critics argue that governments use complex language and economic jargon to hide the true implications of certain budgetary provisions. The release of flashy schemes or "freebies" can often divert attention from the larger issues of inflation, growing inequality, and job insecurity. For example, government welfare schemes or subsidies may look like significant support for the masses but are often temporary or insufficient to create lasting change.

Hope for a Friendly, Common Man Budget

Despite the cynicism that sometimes surrounds the budget, many people remain hopeful for a more "friendly" budget that can alleviate the difficulties of the middle class. The expectation is for a budget that takes into account the real economic pressures faced by common people and addresses these issues in a balanced and sustainable way.

Some key expectations from such a budget include:

1. Reduced Taxation: One of the most pressing demands of the middle class is a reduction in both direct and indirect taxes. Lower income tax slabs, along with reductions in sales taxes and VAT, could ease the financial burden on the average citizen. A progressive tax system, where the wealthiest contribute more, could ensure greater fairness and balance in the economy.

2. Eliminating Freebies and Focus on Sustainable Welfare: Freebies or populist measures, although appealing in the short term, often do not address the structural issues in the economy. Instead of handing out subsidies or free goods, the government should focus on improving public services like healthcare, education, and transportation. The money saved from subsidies could be redirected towards improving infrastructure or reducing public debt, which benefits everyone in the long run.

3. Lowering Prices of Essential Goods: With inflation being a significant issue, particularly for the middle class, controlling the prices of essential goods such as food, fuel, and housing is crucial. Measures to curb price hikes, or even better, to lower the cost of living through direct interventions like regulating the market or subsidizing necessities, could bring immediate relief to the masses.

4. Investment in Public Services: A budget that prioritizes public goods such as healthcare, education, and housing will ensure a more equitable society. Many people in the middle class spend a significant portion of their income on private schooling, healthcare, and housing, which often limits their ability to save or invest. Affordable, quality public services can ease this pressure.

The Path Forward

The call for a friendly budget is not just about lowering taxes or providing short-term relief. It is about creating a sustainable economic environment where the middle class can thrive. This means addressing income inequality, reducing corruption, promoting economic stability, and ensuring that the wealth generated by the economy is distributed more evenly.

A good budget should be transparent, with clear accountability, and focus on long-term growth that benefits all segments of society, especially the middle class. Rather than implementing superficial measures or relying on promises of free goods, it should focus on systemic reforms that promote equality, fairness, and access to basic rights for every citizen.

Ultimately, while the budget is a crucial tool for economic planning, it must evolve to reflect the needs of the times. It should be a document that fosters hope and progress for the common people, not just a tool for political maneuvering or corporate interests.