Business Today

Fiscal Profligacy

The spending involved in implementing Budget proposals will throw the fiscal position off track.

When the government was drafting this years Budget, it seems the only thing it had in mind was elections later this year. No wonder then that when the interim Finance Minister, Piyush Goyal, unpacked his customary Budget suitcase, it had many goodies for the common man, farmers and workers in unorganised sectors.

In what some of the critics called the cash for vote Budget, the government seems to have thrown fiscal prudence to the winds. In announcing a direct benefit transfer scheme for farmers under which it plans to give Rs 6,000 every year to 120 million farmers with landholding of less than 2 hectares the government took an additional financial burden of Rs 75,000 crore in the next financial

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