-Livemint.comWith no significant spending increase to boost consumption or other major reform, the 2020 budget may lack the firepower to reignite the economy
A growth slump, a precarious fiscal position and rising inflation: these are extraordinary times for the Indian economy. Yet in the 2020 Budget, these extraordinary times did not lead to the extraordinary measures so many economists were clamouring for. Like previous budgets under this government, the latest one has adopted a gradualist approach towards reforms.
A growth slump, a precarious fiscal position and rising inflation: these are extraordinary times for the Indian economy. Yet in the 2020 Budget, these extraordinary times did not lead to the extraordinary measures so many economists were clamouring for. Like previous budgets under this government, the latest one has adopted a gradualist approach towards reforms.
Perhaps the most common call ahead of the budget was for greater government spending to boost waning consumption. That stimulus has not come: overall government spending growth in fiscal 2021, although higher than the five-year trend, is budgeted to be lower than the ongoing financial year. Spending itself remains skewed towards revenue expenditure instead of capital expenditure.
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