Overall, the Budget is bold and responsible, paving way for economic consolidation. Definitely not a populist Budget as expected during a pre-election year.
Chief economic adviser Raghuraman Rajan has managed expectations and succeeded in delivering a commendable Budget with a conservative approach. His macro-economic thoughts, craftsmanship and signature is visible all through. Focus on containing the fiscal deficit to 4.8% is good for growth. Most tax rates have been left unchanged, indicating the stability of the tax environment, barring taxing the super-rich (thanks to Azim Premji).
Emphasis on continuation of structured reforms are evident. Effort to contain inflation and reduce the interest cost to drive consumption and overall growth is positive. The Budget is favourable for ailing sectors like road, power and coal. Investment in infra and increase in the personal savings through tax bonds are good growth drivers.
Finally, the vital question is how will our PM create jobs for 1 crore youth every year? There?s no clear answer to that.
The author is Jyothy Laboratories joint managing director