Experts Decode Union Budget's Strategic Signals at Andhra University Seminar
Amidst a landscape of shifting global economic dynamics and evolving international trade patterns, financial and academic experts have identified several forward-looking signals embedded within the recent Union Budget. These insights were prominently discussed during a seminar held at Andhra University in Visakhapatnam on Friday, as part of the centenary celebrations of the AU School of Economics.
Focus on Productivity and Global Alignment
Professor D Hari Narayana, Vice-President of SIDAR, emphasized during a panel discussion that the Budget has largely steered clear of populist measures, even with upcoming elections in certain states. He noted that the government's focus appears to be squarely on enhancing productivity and strengthening economic resilience in the face of global uncertainties. "The alignment of trade policy with emerging international trends is a key highlight," he stated, pointing to initiatives aimed at deeper integration with global value chains.
Key Budgetary Measures Highlighted
The seminar shed light on specific budgetary provisions that signal a modern, tech-driven approach to economic management:
- Digitization of Customs Procedures: A move to streamline trade and reduce bureaucratic hurdles.
- Globally Aligned Trade Policies: Efforts to harmonize India's trade framework with international standards.
- Integration with Global Value Chains: Strategies to position India more firmly in worldwide production networks.
- Use of Artificial Intelligence (AI): Leveraging AI to reduce dependence on critical foreign technologies and boost domestic innovation.
Fiscal Discipline and Policy Critique
Earlier in the seminar, Professor R Sudarsana Rao, former Vice-Chancellor of Vikram Simhapuri University, described the Union Budget as a "comprehensive policy document" designed to sustain economic growth while maintaining strict fiscal discipline. This view was echoed in discussions on the government's commitment to continued fiscal consolidation.
Tax Relief and Sectoral Concerns
Chartered accountant Y Surya Chandra Rao of Rao and Manoj Associates highlighted a significant change in tax policy: the tax collected at source under the liberalized remittance scheme for education and medical purposes abroad has been reduced from 5 percent to 2 percent. This adjustment is expected to alleviate financial pressure on students and families seeking overseas education and healthcare.
However, not all feedback was uniformly positive. Professor B Lilly Grace Eunice, Head of the Department of Economics, provided an overview of the Budget, welcoming the fiscal consolidation but expressing concern over "the lack of significant expansion in health and education allocations." She urged for greater investment in these critical social sectors to ensure balanced development.
Event Coordination and Participation
The seminar was coordinated by Professor D Asha Latha, ensuring a structured and insightful discussion. Dr VVS Rama Krishna, Assistant Professor at the School of Economics, also contributed to the proceedings, enriching the dialogue with academic perspectives. The event served as a platform for robust analysis, underscoring the Budget's role in navigating complex global economic shifts while addressing domestic priorities.
