24 July, 2021

Arithmetic And The Road Beyond

The Budget seeks to harmonise growth with macroeconomic stability

Ajit Solanki
Arithmetic And The Road Beyond

Any ex-post-analysis of the budget is of course inevitably predicated on our predilections. Not necessarily prejudice but clearly our preferences. In the pre-reform era before 1991, the budget was primarily an accounting statement of expenditure and revenues. In the post-reform era beginning 1991, it has increasingly become a policy instrument covering what Barack Obama would call the embodiment of our values. Liberalisation increases our global interdependence and policy-making through the budget has become the preferred option of successive governments. This year there were added expectations—a stable government, a decisive leadership and favourable external factors like soft oil and commodity prices.

Has the 2015 Budget met the heightened expectation threshold?

1 The arithmetic: notwith­stand­ing the increased revenue compulsions arising from the Fou­r­­­teenth Finance Commission devolutions, with pressures on social spending not abetting, the Budget adhered to the path of fiscal...

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