A closer look at Budget 2016-17 reveals that it has set a firm and sustainable recovery in motion. The finance minister has done this in a constructive way by staying on the course of fiscal prudence. With financial year (FY) 2015-16 targets for fiscal consolidation being met, the finance minister has stayed firmly on course, with a deficit target of 3.5% for FY17. This is easily one of the good decisions taken without compromising on expenditure required for infrastructure.
With the end result in mind, I will put a constructive label on the Budget as it is a vital reminder of the importance of fiscal stability. While the finance minister has not allocated large amounts to investment in infrastructure in the light of fiscal constraints, the amount is still vast enough to keep the growth wheels of the economy running. This shows that the government has set its sights on a slow, gradual, and persistent recovery in the economy.
