Given that this is his last chance at big spending before next year’s general election, it is not unreasonable to expect Prime Minister Narendra Modi to add a populist tinge to his Feb. 1 government budget. This is especially true as his main political opponent, Rahul Gandhi, is on a months-long trek, walking from the edge of the Indian Ocean in the south to Kashmir in the northern Himalayas, in an attempt to spark enthusiasm for everyday issues Such as unemployment and inflation.
At best, however, the budget caters to the middle class with some superficial tinkering with the income tax schedule. I would be surprised if the government suddenly decides to push mass consumption by downplaying its single-minded commitment to investment.Expanding the welfare state — for example, better old-age security and higher maternity benefits — is also unlikely, although it would help Modi counter Gandhi’s charge that his government is Work only for a few wealthy tycoons such as Gautam Adani and Mukesh Ambani, two of the richest men in the world.
