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Economy and Business

As Finance Minister Arun Jaitley gets ready to present his third full budget, excitement is building up.

 

It has become manifestly clear that it is a political move without an economic rationale

 

The India Economic Survey prepared by chief economic adviser Arvind Subramanian projected the economy to grow in the range of 6.75% to 7.50% in fiscal year 2017-18

 

The one rationale for demonetization that was commonly accepted as legitimate was its presumed attack on 'black money'. 

 

The budget has assumed importance because it will solidify the way the NDA government sees the fiscal governance of this country

 

It can contribute to the economy, but it disproportionately affects low-skilled native workers

 

Post-demonetisation, a reversal of the slowdown would require enhanced public spending. It doesn’t appear to be forthcoming

 

He must stimulate the economy, keep tax incentives, placate people post-demonetisation.

 

The budget finance minister Arun Jaitley unveils this week will be judged mostly for what it does to put the Indian economy back on the growth track. There are many ideas and propositions doing the rounds; the one I would pick is that of a fiscally expansionist budget.

 

"I think the government, having shot itself in the foot by demonetisation, should quietly accept that growth in 2017-18 and 2018-19 will be between 6 and 7 per cent," says former finance minister P Chidambaram.

 


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