Budget is well-intentioned on the big themes. But execution will be key

All told, the budget has performed an artful balancing act against a difficult macro backdrop. The big themes — financial, external, fiscal — are all well-intentioned. Now, the authorities must walk the talk with equal skill.

budget, budget 2019 date, budget 2019, budget 2019 highlights, budget 2019 india, budget india, union budget, budget updates, union budget 2019 india, budget important points, budget 2019 income tax, incom tax slab, income tax slab rate, nirmala sitharaman, — Union Minister for Finance Nirmala Sitharaman, MoS Anurag Thakur leave the Finance Ministry office to present the Budget in Parliament. (Express Photo: Neeraj Priyadarshi)

The first budget of the government’s second term was always going to be a delicate balancing act. On the one hand, growth momentum in India — and indeed, around the world — has slowed markedly in recent months. On the other hand, there was no space for a fiscal stimulus, as some had clamoured for. The broader public sector is already eating up virtually all household financial savings. Bond yields have finally witnessed a rally in recent weeks. Any widening of the fiscal deficit would have reversed those gains, pushed up interest rates more generally, and thereby undermined the efficacy of the RBI’s monetary easing cycle. How, then, should the government have tried to boost growth, investment and savings without any fiscal latitude?