The Man for All Seasons

As Pranab Mukherjee gets ready to present the Union Budget on July 6, the media drumbeat has begun in right earnest. For the most part, the hype is usually unfounded. And over the years, the Budget, as an instrument of policy, has become more and more irrelevant. But this year, the event could actually be significant.

After its unexpected victory, the Congress Party needs to signal that it means business. When the Cabinet met for the first time on May 23, Mukherjee apparently set the tone by making it clear that this was “a very different government from that of 2004.” The new focus must be, he said, on better governance. The Budget will be the first real test for the Manmohan Singh government.  And for Mukherjee himself.

Pushing through transformational change in a democracy as large and diverse as ours isn’t just a matter of intellect alone. It needs perseverance, courage of conviction and an ability to listen to different points of view — something Mukherjee has aplenty. After all, he’s been the party’s consensus builder, politician, strategist and trusted aide all rolled into one. In some ways, he is also the bridge in the current government between the India of a generation ago and now. When he presented his first Budget in 1982 as FM in Indira Gandhi’s government, India was yet to emerge out of its socialist cocoon. Interestingly, the concerns 27 years ago were much the same — external threats, international protectionism, and money for investment and infrastructure building. But the context has changed. And how!

Even as India explores a new model of inclusive growth, I always find it amazing to see a generation of businessmen who fought hard to free business from the clutches of government red-tape talk eloquently about the need for better social infrastructure these days. You would expect them to violently oppose government spending on healthcare and education and demand more sops for industry and lower corporate taxes. But pragmatic businessmen have realised that a resurgent Bharat is the best news for them too. And it’s true. With export markets in a funk, it looks like a buoyant domestic market may eventually save the day for India Inc.

In the socialist India of 1982, Mukherjee’s big push on government spending would have most likely been panned by businessmen and investors alike. But in 2009, will they cheer if Mukherjee decides to raise taxes to bolster his spending spree? Like you, I’m waiting for the drama to begin.

P.S. We’ve decided to delay our next edition by a week so that we can bring you our Special Budget issue hot off the presses. It will be available on the stands from July 9 onwards.