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Budget and the growth process

The government's command over household savings needs to be reduced for stimulating demand and private credit

Nitin Desai
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Illustration: Binay Sinha

The Union finance minister’s Budget speech indicates seven action areas that are covered mainly by listing about a hundred or so specific projects, old or new. Most of these projects fall within the competence and purview of other ministries. There is no discussion of strategy that could promote these ends through the economy.
This is not to say that the Budget speech should have done that. The main task of the Ministry of Finance is managing public finances and exercising its planning and oversight responsibility over the financial sector. The statement of development strategy and the priorities for public spending that it requires should really come separately, perhaps in an annual State of Development Report by the prime minister, particularly because of the PM’s role as chairman of the NITI Aayog.
The strategic impact of the Budget should be elaborated mainly in the revenue proposals that form Part II of the Budget speech, while the
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First Published: Feb 20 2023 | 10:28 PM IST

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