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Budget 2018: This could be the best time for Modi to honour fiscal pledges

On current policy, the government predicts growth will rise from 6.5 percent to somewhere between 7 percent and 7.5 percent

PM Narendra Modi, along with Parliamentary Affairs Minister Ananth Kumar, Ministers of State Jitendra Singh and Arjun Ram Meghwal, addresses the media on the first day of the budget session of Parliament, in New Delhi
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PM Narendra Modi, along with Parliamentary Affairs Minister Ananth Kumar, Ministers of State Jitendra Singh and Arjun Ram Meghwal, addresses the media on the first day of the budget session of Parliament, in New Delhi. Photo: PTI

The Editors | Bloomberg New Delhi
With elections in sight, India's government is under pressure to loosen fiscal policy in its budget on Thursday. Tempting as this may seem, it would be a mistake.

Chief economic adviser Arvind Subramanian has made the most candid argument for relaxing the country's tough fiscal stance: Given the political calendar, promises to honor the targets simply wouldn't be believed. He has a point -- but the answer is to do a better job of explaining why the targets make sense.

The Indian economy was jolted by the overnight withdrawal of high-value currency notes in November 2016 and last July's introduction

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First Published: Jan 31 2018 | 12:01 PM IST

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