Beyond the budget

From a macro perspective, the key variable in the budget is the fiscal deficit of 5.1 per cent. Even though this is a reduction from the actual 5.9 per cent in the last fiscal year, it is predicated on a GDP growth rate of 7.6 per cent. This brings us back to the probability of achieving this growth rate. Whenever policy makers are asked how this growth will be achieved, the standard answer is — “but the fundamentals of the economy are strong, therefore...”

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