India's Budget: Expectations versus fiscal prudence

INDIA is poised to become the world's fastest growing major economy in a few years, surpassing China in growth as the Chinese economy slows down after galloping for almost three decades or more.

After the new government came to power in 2014, it rapidly rolled out several measures to brace the economy and lift the overall business sentiments. Various projections place India's growth in 2014-15 at 5.5 per cent and Budget 2015, therefore, is riding high on aspirations. Anticipated to build on the current reforms momentum, this budget is expected to place the country back on the path to sustainable high growth, ushering in a stable tax regime and boosting positive sentiments in the business economy.

The Indian government is challenged to deliver a budget that is easy on the pocket of the common man, and yet sufficiently encouraging for corporates and foreign investors. The government, therefore, will have to strike a balance between expectations and fiscal prudence and lay down a clear and a stable policy framework to boost the Indian economy.