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Friday, February 2, 2018

Concise high-level review of Indian Budget 2018

Overall it's a good budget. I would give 3 out of 5 stars to the budget.
  1. The first best aspect of the budget is the fiscal discipline. Though there is some amount of wastefulness, the Finance Minister has not taken his eye off fiscal deficit.
  2. The second best aspect is attention given to Universal Healthcare. I am a strong votary of basic Universal Healthcare (though I am against the State paying for expensive treatments for its citizens).
  3. The third best aspect is the attention given to poor people. Yes, there is not much for the middle class to cheer about. However, the Government should be prioritizing the basic needs of the poor over the aspirational wants of the middle class.
That said, the budget is not out-of-the-box. May be, the Government lost appetite for risky moves, after the (well-intentioned) adventure of demonetization!

Addendum:
"Indian Government will take all measures to curb use of cryptocurrencies like bitcoin" - Budget 2018 by Arun Jaitley, Finance Minister.

This is a bad declaration by the Finance Minister because this crude move will stop innovation that is taking place in this powerful space in India.

Bitcoin and fiat money

All it takes is a major, difficult, damaging, long war involving a developed nation, and then the bitcoin will be more widely used for storing part of assets, as people become a little more wary of the fiat money they own.