Since I have been a spectator of the Indian economy
for past several years it is natural for me to form an impression of the budget
and I find it worthwhile to put my angle before my audience. Everybody was
waiting for a relaxation in the fiscal deficit target which did not
materialize, but the thrust for development and growth is clearly evident in
the spending without deficit. Almost all the important ideas economists and
analysts pointed-out have found space in the budget, be it agriculture, ease of
doing business, infrastructure, health, farmers, irrigation, skill-development,
job creation and many more… Although, the allocation of resources is always a
problem, demand is higher, but the budget is right in the spirit when our FM
did not want to sacrifice deficit and macro-economic-stability for more
spending and higher growth rate. Probably the specter of last government’s
overheated economy prompted our FM not to go overboard and keep the powder dry
for the troubled times. But, he has targeted the right places which might need
more resources, but resources are scarce with supply side problems in a
developing economy and low inflation is important for policy-making and the
credibility. If the government gives money to people to buy food and it is not
available in the market, it would increase inflation and would cut real wages…
Our FM tried to avoid these repercussions of too much spending which was a good
take… A sensible budget…
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