Budget and macro challenges

In my column last month (“Confronting macro challenges”, Business Standard, June 13, 2019), I had outlined the ominously negative trends in nearly all the usual indicators of India’s macroeconomic performance (growth, investment, employment, inflation, external balance and fiscal position) and suggested a broad strategy to counter these trends. It is heartening to see that most of my diagnosis and prescription is reflected in the government’s latest Economic Survey, published last week. Unfor­tunately, I cannot claim the same degree of congruence with Finance Minister (FM) Nirmala Sitharaman’s Budget. Let me illustrate with some elements of my recommended strategy: Fiscal policy, trade and exchange rate policy and an investment-promoting reforms thrust.
 
Fiscal policy
 
To begin with the positive, FM merits