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Boosting economy

Boosting economy

The news hasn't spelt well for the economy over the last few months with the growth rate slumping to its all-time low in the last three years. The bold moves of demonetisation and GST that aimed to battle corrupt practices brought more doom to businessmen than profit to the economic functioning. The government faced wide criticism for its moves which it had harbingered with great faith and nerve. In an attempt to boost the economy which had begun its downward spiral, the government announced a fresh set of propellers that would hopefully catapult our slowing growth numbers towards brighter days. With a budget announcement of 9 trillion aiming primarily to increase cash flow in the economy while generating development oriented employment—this new boost aims to live up to the promises that the erstwhile government had proudly made in 2014 but had failed to effectively deliver, so far, until 2017. Yet, with just three years under its belt, the Modi government is still fresh at the Centre though the Lok Sabha polls are a knocking distance away.

The 2014 election results were largely an outcome of the citizens' frustration with corruption at the Centre and ineffective policy-making that had stunted the economy showing no signs of growth or fresh employment. In this milieu, the BJP with its bold promises of brighter days came forth to jolt the economy out of its days of darkness. Yet, in the last three years, the economy has shown no evident signs of improvement though it had started on a positive note. In an attempt to almost rejuvenate the current state of affairs, Arun Jaitley came forth with a new set of promises by pumping 2.11 trillion into public sector banks that would improve the lending capacity that citizens can tap into. It is claimed that post demonetisation, the banks are better equipped to lend money to bonafide borrowers who in turn could propel the economic growth. The government also announced that 83,677 km of highways would be built in the next five years to create more jobs while also improving infrastructure within the Indian territory.

The government said that it will increase the price at which it procures wheat, pulses, and oilseed from farmers while also promising to waive the penalty on the delayed filing of initial returns on the new GST for August and September. These promises highlight the urgency that has emerged to realign the economy that was swaying towards doom. Bringing in good news that would hopefully spell well in the long run, Jaitley provided some relief to beleaguered citizens who had been harangued by the economy's downward slump. Yet, while the budget is multiplied and larger funds are pumped to increase infrastructure, the government must also be cautious of the implementation of the funding, that it is not lost in an exchange of hands and the citizens get a due return of the taxes that they dutiful pay to the government.

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