Back to the 1950s: State to lead investment and higher taxes to fund it

The reason for higher taxation is the inability of the private sector to invest on the scale required to satisfy the minimum thresholds of political and social needs. We are back to the 1950s

As the finance ministry starts work on Union Budget 2023, due 96 days from now, it’s useful to ask what key political objectives will drive it. We know the answer from the pronouncements of the prime minister and the RSS: employment, employment, employment. 

And therein lies a problem. This is something that wealthier Indians haven’t realised fully yet: higher taxation is inevitable for financing the effort. So brace for it. 

The reason for higher taxation is the inability of the private sector to invest on the scale required to satisfy the minimum thresholds of political and social needs. We are