Accounting for the future: The Union budget could kick off the next generation of reforms.

Abstract

Budget deficit is already high and fiscal profligacy, though politically justifiable, may not make good economic sense. The Union budget of 2014 assumes significance as it would be the first major policy document of the new government. Its first budget is being presented when the coffers are empty, rains are failing and the geopolitical situation is rather grim, impacting oil prices. In such a situation, inflationary pressures are expected to persist, partially because of the long-pending hard decisions that had to be made in the first month of assuming office. The ruling party’s landslide victory is providing a significant goodwill buffer, which should be further utilised to sweep away the Fabian Socialist model of development that had given rise to the licence raj. Therefore, many existing policies need to be reviewed and some more need to be formulated. Indeed, the budget offers a rare opportunity for the government to initiate strong growth-oriented and innovative policies. Read more at: https://indianexpress.com/article/opinion/columns/accounting-for-the-future/