Budget lacked vision, says Ashima Goyal, member of EAC-PM
MUMBAI: The Union Budget was disappointing as it lacked a vision, although measures such as the relaxation of the fiscal deficit target and the simplification of income tax are positive, said the prime minister's economic advisory board member.
Goyal, who is a part-time member of the Prime Minister's Economic Advisory Council (EAC-PM), also said it was a surprise not to mention the word slowdown in the almost three-hour speech. by the finance minister.
The Budget document is an act of balance between the fiscal stimulus to boost growth and the need to be responsible for spending, said at the Indira Gandhi Institute for Development Research here In general, (Budget) was disappointing because they did not bring The vision as the first real budget of a new government. I had to give a vision, ”said the economist. India's GDP growth is expected to fall to a minimum of 5% this fiscal year, under pressure from internal factors such as the drop in consumption, as well as global problems.
However, the finance minister has achieved a balancing act through his movements, Goyal said.
He elaborated that by adopting the exit clause under the Fiscal Responsibility Law and (FRBM), the government gave a stimulus to growth and, nevertheless, affirmed the commitment to the norms against fiscal dishonor. To further advance, he said that a 0.5 percentage point relaxation in the fiscal deficit target offered under the exit clause makes many resources available, considering that the overall size of the economy is almost $ 3 billion.