India is pacing itself for robust yet responsible growth

INDIA'S Budget 2017-18 is unique in many ways: its presentation has been advanced by a month; the railway budget has been merged with it; and the distinction between planned and non-planned expenditure has been done away with. It is mainly focused on boosting consumption without compromising on fiscal prudence.

The Budget 2017 has focused on infrastructure, including digital infrastructure; increasing private investments and consumption and strengthening the social sector and safety net, including health and education. The key feature appears to be several declared deadlines for outcomes such as elimination of tuberculosis by 2025, removal of unmanned crossings in railways by 2019, etc. This makes the Budget more accountable and its impact and progress can be tracked over a period of time.

While measures announced by the Budget have the potential to stimulate the economy, external challenges have escalated. For instance, oil prices are expected to begin rising again while protectionist sentiments have risen across the globe. Given the scenario, the Indian government should not only rely on tax revenues but also augment non-tax revenues through disinvestment and efficient asset recycling.