Budget and macro challenges

There is little in the Budget to provide the necessary growth impetus to take the economy to $5 trillion

illustration: Binay Sinha

illustration: Binay Sinha

Shankar Acharya
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
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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Topics : budget 2019

First Published: Jul 10 2019 | 11:26 PM IST

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