BUDGET MUST LOOK AT FISCAL CONSOLIDATION

WITH signs of a slowdown in the economy getting more pronounced, Union Finance Minister Nirmala Sitharaman, who will be presenting the Union Budget on 1 February, has her work cut out.

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The Budget must not only address the weary private investment scenario in the country but also address the consumption slowdown. The Union government prides itself on being fiscally prudent, and it has proven time and again its resolve to stay on course of fiscal consolidation. However, desperate times need desperate measures. The economic growth is slowing, with GDP likely to grow at less than 7 percent for at least the next three years, including the current one. The anaemic growth of the economy has already led to moderation in consumption-a trend that has been on the show for a couple of years. Rural consumption se