Good Budget, but govt must do a lot more

TheUnion Budget 2026-27, which Finance Minister Nirmala Sitharaman presented on Sunday, is typical of her government’s priorities: fiscal consolidation with high funding for infrastructure. Since important changes in direct and indirect tax regimes were carried out last year, there was not much in terms of taxation. So, unsurprisingly, she laid a great deal of emphasis on enhancing ease of living. But we must remember that economic growth depends not just on the budget day announcements or even on the decisions that economic ministries make; it also depends on decisions and developments in other walks of life. Events in the political arena, social and cultural life, and elsewhere also impact the economy. For instance, while inaugurating the World Audio Visual and Entertainment Summit (WAVES) 2025 in May, Prime Minister Narendra Modi had said, “India, with a billion-plus population, is also a land of a billion-plus stories and over a billion storytellers.” But how do creative people tell stories if they are terrified of politicians, governments and activists, among others? And when they fear legal—or even physical—action. Creative expression thrives in an environment of openness, tolerance, and institutional protection. Writers, filmmakers, journalists, artists and performers must feel secure in the knowledge that disagreement, satire, or critical reflection will not invite disproportionate retaliation—whether legal, political, or physical.

This is where the broader ecosystem intersects uncomfortably with economic ambition. When creative individuals operate under constant apprehension—fearful of offending political authorities, social groups, or activist interests, the quality and diversity of expression inevitably suffer. Self-censorship becomes a survival strategy. Gradually, safe and predictable narratives replace experimentation and dissent. Over time, this diminishes not only artistic vitality but also the innovative energy that modern economies depend upon. From an economic perspective, this matters more than is often acknowledged. Creative industries are among the fastest-growing sectors globally, generating employment for young people, attracting foreign investment, and contributing significantly to exports and tourism. Countries that succeed in these sectors typically combine strong infrastructure and funding with robust protection for free expression and the rule of law. India’s own experience offers instructive lessons. Its global cultural influence—from cinema and music to literature and digital content—has historically flourished when creators enjoyed space to explore complexity, contradiction and critique. Conversely, periods marked by excessive control or intimidation have tended to coincide with stagnation and inward-looking production.

In fact, the climate of fear or intolerance has spillover effects far beyond the creative sector. Entrepreneurs hesitate to take risks in an environment where rules appear unpredictable or selectively enforced. Investors become wary when institutions seem vulnerable to political pressure. Businesspersons fear voicing their concerns lest some minister or a bureaucrat gets angry. Hence, the impact of the Budget 2026-27 will only be minimal unless other conditions are also fulfilled. For India’s growth story to remain credible and sustainable, economic policy must be complemented by a broader commitment to institutional integrity, social openness, and cultural freedom. The government’s emphasis on stability and continuity in economic management is welcome. But stability must extend beyond macroeconomic indicators to encompass the lived experience of citizens, creators, and businesspersons. Growth flourishes best in a society that is not merely orderly, but confident enough to allow its people to think, speak, and create without fear. India can tell “billion-plus stories” if its storytellers and wealth creators are free to tell them.