“Budget Not for Policy Announcements, Too Much Drama”: Anand Mahindra

Anand Mahindra has expressed that the Budget is not necessarily the platform for significant policy announcements. He noted that an unrealistic level of drama is associated with the Budget every year, creating heightened expectations for major policy changes. Mahindra, the chairman of the Mahindra Group, shared his views in response to the Interim Budget presented by Finance Minister Nirmala Sitharaman, emphasizing the need for a more balanced approach to the annual budgetary process.

“The Budget is not necessarily the platform for transformational policy announcements. Such changes can and should occur throughout the year,” Anand Mahindra stated. He emphasized the budget as an opportunity for prudent financial planning and fiscal responsibility, aligning with the principles of living within means and investing for a sustainable future to boost global investor confidence. Mahindra expressed contentment with the Interim Budget, citing reasons such as the Finance Minister’s concise speech, absence of populist measures, improved fiscal deficit target, and no alterations in taxation.

Anand Mahindra praised the brevity of the Finance Minister’s speech, considering it a welcome and confidently communicated approach. He appreciated the absence of populist measures, hoping for a continued trend. Mahindra highlighted the improved fiscal deficit target, seeing it as a victory for prudence. Noting the lack of major tax changes, he emphasized the value businesses place on stability and predictability, which, according to him, was evident in this Budget.

Anand Mahindra applauded the higher Tax to GDP ratio as excellent news, considering it a strong foundation for fiscal flexibility and aggressive expenditure when needed. He suggested that the Finance Minister should emphasize this achievement more prominently. The last Budget before the Lok Sabha elections avoided significant giveaways but increased the capital expenditure outlay to 11.1%, amounting to ₹11.11 lakh crore. The government aimed to reduce the fiscal deficit to 5.1% in 2024-25 from the current year’s 5.8%.