Experts divided on fiscal impact of Modi sops

PM's announcement were focused on those most affected by the note ban

Economists are divided on whether Prime Minister Narendra Modi’s populist schemes announced on New Year’s eve will add to the government’s spending burden for this year and the next. While most expect the net expenditure on Modi’s sops to be incremental, some say it will add to the Centre’s burden.

On Saturday evening, Modi presented a mini Budget of sorts at the end of the 50-day demonetisation exercise. His announcements were squarely focused on those most affected by the note ban including farmers, small businesses, women, senior citizens, poor, and the lower middle class.

There were interest rebates and waivers