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Budget's here! Will Jaitley shun mindless populism ?

India Infoline News Service | Mumbai |

The government would take bold decisions and pursue path of fiscal prudence to revive economy, Arun Jaitley says

The government would take bold decisions and pursue path of fiscal prudence to revive economy, Arun Jaitley says

Finance Minister Arun Jaitley stressed that India has to make a choice between mindless populism and fiscal prudence.

Investors will keenly look at what the FM finally does as far as the budget is concerned.

Earlier this week,

Jaitley said the government would take bold decisions and pursue path of fiscal prudence to revive economy. If you indulge in mindless populism, you burden the exchequer, Jaitley said.

Speaking at an event organised by Institute of Chartered Accountants of India on Tuesday, Jaitley said that opportunity to grow comes with challenges.

According to Jaitley, India could not afford populism under the current circumstances with the economy growing less than 5% and in the grips of a high fiscal deficit and high inflation.
"That is a trap that will be difficult to get out of," he said.

Pointing out the challenges faced by India, he said fiscal deficit is high, inflation is beyond acceptable limits and the fallout of Iraq crisis looms large on the economy.

WPI Inflation rose to five-month high of 6.01% in May, while the fiscal deficit stood at 45% of the budget estimate in the months of April and May.

Jaitley said that it was an impediment to growth. "Fiscal deficit is a major challenge. The growth has slowed down," he said.

 

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