The impending Union budget 2023 has drawn a great deal of interest from across all walks of lives. Though every budget will be in a fashion of attracting scrutiny, the upcoming one has added spice to the expectations as it will be the last full budget of the BJP regime ahead of the 2024 Lok Sabha polls. Having said that, the centre would go extra mile to woo the national voters amid having a slew of issues at stake. 

Union Finance Minister Nirmala Sitharaman will be presenting her fifth budget and though the ball is in her court, the pitch isn't in favour of her and the government - it's palpable from wide range of issues like growing unemployment, inflation, and poverty, high expectations from the middle and salaried class people on cutting the interest, to enhancing the corridors for startups, MSMEs, infrastructure, and jobs - which would drive the country towards a holistic development. 

At a high time when Prime Minister Narendra Modi is advocating the BJP cadres to market, ahead of the polls, for the budget as his initiative to change the lives of people, this upcoming budget would give prospect for the voters to weigh the Modi administration as it vies for the third consecutive term. As it is the last chance for the BJP government to perform a socio-economic push and to turn its tide towards the people who are facing an economical plight ahead of the Lok Sabha polls, what can we expect from the budget and how it will impact the masses?

We spoke with KE Raghunathan, the founder-chairman of Association of Indian Entrepreneurs, who is based in Chennai to seek his insights and demands on the Union budget. Citing that only 400 days left for the general elections, Raghunathan said, "For the last one year, there has been no major disruption, no adverse impact of Covid, and no lockdown, which made the entrepreneurs to have a hassle-free business operations. People have lot of expectations today and particularly the anguishing middle-class people are expecting a relief in the wake of inflation." 

He further said, "If a family can run its business at Rs 15,000 per month a year ago, the condition now persists in a fashion that the same family can't meet its needs though it earns Rs 22,000 a month. A major expectation is that how the budget is going to mitigate this gap and suffering. Secondly, the people who are into Micro, Small, and Medium Enterprises (MSMEs), who are in a trend where they can't make profits and they are plummeting towards a downfall. Most of these entrepreneurs are being pushed to close their ventures and to breathe a relief in their life. So, if this budget doesn't wipe out their tears, then it will be like the hands with no use." 

"This kind of situation has happened to everyone and the budget has been expected by the masses. Amid the question of whether it will be a popular budget or a professional budget, the GST data shows that the government has earned a revenue more than what was expected on one hand, on the other hand, we are witnessing a rising inflation and a situation that's distressing the MSME entrepreneurs, people who are aspiring for jobs, people who lost their jobs, and graduates. Most of the startups are in plight that they send their employees home owing to a backlash in funding", Raghunathan opined. 

Responding about where we can expect an investment push, Raghunathan said, "We can expect that the government would be spending more on infrastructure and on defence purchases and defence expansions. The government will increase the possibilities for Atmanirbar Bharat, the production-linked incentives, which were given to 14 sectors, would be increased to 25 sectors. All these would be corporate-related initiatives. What the government understands is if the corporate is doing well, the companies that depend on the corporates will perform well, and if they perform well, the lives of many workers including the workers of unorganized sectors will be safe." 

"But, this time, the budget has to introduce measures directly to the MSMEs and unorganized sectors and the government should stop helping the corporates. How they can do it? The RBI has increased the interest rates in recent months and the MSMEs are struggling with this interest burden. Due to the growing interests, there are many people who can't pay their personal loans, housing loans, gold loans, and business loans. So, the government should give them a concession. There are more people who are pushed to close their business in the wake of Covid and lockdown in the past two years and this budget should provide a way for them for a revival. Simply put, the businesses can face downfall but the entrepreneurs shouldn't get destroyed", he added. 

He further said, "If an employee loses job, he or she would search jobs in other companies. But if the business people close their business, they would try to venture into a new business and this budget should provide more opportunities for them. It's wrong when we perform actions that would further push such business people down. Sadly, we have been doing that so far. We neither shared their pain nor we wiped off their tears. I think that this time, the government is in the necessity to fix this. If the government fails again, they will face repercussions in the upcoming election." 

Highlighting the data that shows that about 70% of people are into poverty, Raghunathan stated, "Earlier, we didn't realize its impact but we can realize the difference between the luxury and the poor. The suicide of entrepreneurs has increased to 22% in 2022 than in 2021. The entrepreneurs are in a situation where they have no proper directions, no sight of revival and no light of building a trust. What's agony is the situation of people who are not under the Income Tax bracket, those who earn Rs 10,000 per month. If the government wants to uplift them, the budget would give them an equal share." 

"For the betterment of middle class people, the government should pitch for equity than equality as this class of people are enduring a huge distress through the high tariffs from the state governments and taxes from the centre governments in various forms, from GST, gas, and petroleum taxes. This budget shouldn't disappoint them and though the government speaks about 'Amrit Kaal' for the next 25 years, it has to venture into saving the lives of people today", Raghunathan added.

As the salaried class people expect an increase in an individual income tax slab in this upcoming budget, Raghunathan said, "My opinion is that the government should announce that there would no income tax deduction for people who earn Rs 10 lakh per year for the next two years. If not, then the government should announce tax exemption for the household products. If I buy a refrigerator by spending Rs 30,000, I can reduce this 30,000 from my tax. Let the government announce there is a rebate for my expenditure and instead of paying for you, I can develop my lifestyle. We must think extraordinarily in extraordinary situations. If the government must be saved, if the people have to be saved, if we prevent ourselves from global recession, we must think differently. The government mindset of forgoing Rs 8 lakh crore debts or revenue for the corporate sector should now be benefitting the middle-class people. This is what we are demanding for."