Union Budget 2019 Expert Opinion: Raghuram Rajan has a message for Modi government ahead of February 1

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New Delhi | Published: January 23, 2019 3:06:45 PM

Expert Opinion on Union Budget 2019 Expectations: Speaking on his expectations from the key Union Budget 2019, Rajan said that the interim budget should be a "responsible" one "because after all there is not that much spending that one can do."

Experts Opinion on Union Budget 2019Experts Opinion on Union Budget 2019: Former Reserve Bank of India (RBI) governor Raghuram Rajan

Budget 2019 Expert Opinion on Budget Expectations: Former Reserve Bank of India (RBI) governor Raghuram Rajan wants the Budget 2019 to a “responsible” one. Rajan, who is in Davos to attend the World Economic Forum, said that beneficial legacy for this government would be for their last Budget to be a “responsible” one. The India Budget 2019 should not saddle the next government with legacy, Rajan told Bloomberg Quint. He said this stating that if budgetary announcement becomes more than the normal then the newly elected government has to deal with it. “Even if it may be the same government again but it creates a problem for the future,” Rajan was quoted as saying.

Speaking on his expectations from the key Union Budget 2019, Rajan said that the interim budget should be a “responsible” one “because after all there is not that much spending that one can do.” “Outline parts for reforms if necessary in the budget but allow the next government to figure out how to take it forward,” Rajan said.

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Talking about the Fiscal target, the former RBI Governor said the numbers are not as important as the quality behind the numbers. He said that the government can reach whatever the target it wants as a target. “But if what you have done is put a lot of stuff off balance sheet, it becomes problematic. This is something that CAG pointed out in past budgets,” Rajan said.

Rajan also said that the government’s intervention in agriculture has been “sporadic and often distortionary”. He recommended the central government to “rethink the whole process”. “It’s not the case that other governments don’t intervene but are there more effective ways of intervening. The government needs to move on technology dissemination. The government needs to think whether it can replace subsidies, distortion, government procurement with something more market-friendly,” Rajan said.

Rajan was appointed as the prestigious post in September 2013 and his tenure ended in 2016. The Budget 2019 will be presented by Finance Minister Arun Jaitley on February 1, months ahead of the key Lok Sabha elections 2019.

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