In this year’s Union Budget, the government has taken on the role of an ‘enabler’ rather than an ‘allocator’ of capital. This year’s Fiscal Policy Strategy Statement, which accompanies the Budget document, emphasizes fiscal conservatism when it says: “…strong fiscal discipline over the medium term will reduce the government’s share in the economy and free resources for private investment.” Instead of looking for largesse from the government, it is time Indian companies grew up and learned to fend for themselves in the private sector.
The focus of the present Budget has been on the expenditure side. Expenditure of the government can be grouped into three areas: running of the government including interest payments, spending on the social sector and finally, spending on infrastructure.
