Fiscal balance amid coalition compromises

Tinkering with rates proposed in the Budget does not change the protectionist stance and there is a need for rethink on the issue

- M GOVINDA RAO

The much-awaited first Budget of the third Narendra Modi government is on predicted lines. This is the seventh straight Budget presented by the finance minister. The Budget attempts to set priorities for the long-term goal of achieving "developed-country" status in the centenary year of Independence. At the same time, it has taken cognizance of coalition compulsions and has acceded to the demand from the allies whose continued support is critical. Most of the revenue and expenditure numbers are quite close to those presented in the Interim Budget except for a substantial increase in non-tax revenue due to a higher dividend of ₹2.1 trillion as against ₹1 trillion given in the Interim Budget. There is a marginal improvement in the deficit estimates.