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Budget 2018: Govt doesn't rule out fiscal consolidation pause in FY18

Modi expected to strike a balance between giving incentives to taxpayers before 2019 national polls and reassuring rating companies looking for an improvement in one of Asia's widest budget deficit

Abhijit Roy Chowdhury & Vrishti Beniwal | Bloomberg 

India cannot rule out a pause in its fiscal consolidation plan in the year through March, a key government adviser said, setting the government’s tone ahead of Thursday’s Union budget 2018. "Setting overly ambitious targets for consolidation — especially in a pre-election year — based on optimistic forecasts that carry a high risk of not being realised will not garner credibility," Chief Economic Adviser Arvind Subramanian said in the Economic Survey presented in Parliament on Monday.

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First Published: Mon, January 29 2018. 16:05 IST
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