Budget 2020 has a lot of positives, but 'dil maange more'

With emphasis on privatisation, productivity should improve in the long run.

Union Budget 2020-21 was always going to be tightrope walk for the Finance Minister given the weak economic growth, slower tax collection and subdued business sentiments. The task was cut out to revive growth and maintain macroeconomic stability within limited space for spending for financial year 2020-21 (FY21). FM’s honest attempt to deliver this has few positives but one is left with a feeling of ‘dil maange more’. Capital markets, in particular, would have loved to see more stimulus measures for specific sectors.

Nominal GDP growth of 10 per cent is a fair estimate. Assuming 4 per cent inflation rate, it