Feasible fiscal path

Quality of expenditure shouldn't be compromised

Union Finance Minister Nirmala Sitharaman will present what is perhaps the most consequential Budget in recent history on February 1. The broad direction of the Budget will be critical in determining the medium-term outlook for the economy. Apart from the broad policy thrust, it would be vital to see how the government intends to manage its finances. The Covid-induced economic disruption, which is projected to cut the size of the Indian economy by 7.7 per cent in real terms during the year, has significantly affected the government’s revenue and expenditure. The fact that government finances were already under pressure even