베인은 홈페이지 기능 및 성능 개선을 위해 쿠키를 사용합니다. 이와 관련된 더 많은 정보는 개인정보 메뉴에서 확인하실 수 있습니다. 이 웹사이트를 계속 사용하시면 쿠키 사용에 동의하신 것으로 간주됩니다. 

Fortune India

A Budget to Live With

A Budget to Live With

India's finance minister has managed to pull off the balancing act.

  • 2018년2월1일
  • 읽기 소요시간

Article

A Budget to Live With

This article originally appeared on Fortune India.

In the lead up to the budget speech, it was anticipated that the Finance Minister, Mr. Arun Jaitley, would have had one eye on the upcoming Assembly elections this year and the Lok Sabha in 2019.

The most common phrase bandied about from prognosticators was that this was going to be a “populist” budget with many sops. The FM was also dealing with lower revenue receipts and a higher than expected fiscal deficit for this time of the year. He was therefore going to have to walk a fine line in terms of making sure that various constituencies were satisfied and at the same time sticking close to the commitments he had made over the years on fiscal deficit.

The overall take-away is that he has managed to pull off well the balancing act. The decision to not stick to the fiscal deficit targets that he set for himself for FY18 and FY19 is as much a political statement as it is an economic one. He has decided that it is far more important to breach the norms in the short term to ensure that growth is not stifled and that there is potential headroom for job creation. Increasing the interest burden of the country at a time when oil prices have been creeping up steadily could well be an unintended consequence.

Read the full article at Fortune India.

Sri Rajan is chairman of Bain & Company India.

태그

베인에 궁금하신 점이 있으신가요?

베인은 글로벌 리더들이 중요한 이슈를 해결하고 기회를 놓치지 않도록 지원합니다. 고객사와 협력하여 지속되는 변화와 성과를 창출합니다.