Britain needs an entirely new fiscal framework if it is to put an end to the ever-mounting burden of public indebtedness, but neither the presiding Tory government nor its likely Labour successor show any sign of wanting to apply the required restraint.
Devang Mehta says: The Interim Budget displayed fiscal prudence by capping the fiscal deficit for 2024-25 at 5.1%. It emphasized policy continuity and commitment to fiscal discipline. The budget included the upgradation of 40,000 bogies to Vande Bharat standards, a Rs 1 lakh crore corpus for tech-savvy growth, and lower-than-expected borrowing costs. With a focus on capital expenditure and infrastructure development, sectors like capital goods, infrastructure, power ancillaries, and renewable energy are expected to benefit.
The biggest positive in the interim budget was the fiscal discipline displayed by capping the fiscal deficit for 2024-25 at 5.1%. The fact that the government has not curtailed capital expenditure and has, in fact, enhanced it to ₹11.11 lakh crore only builds on the foundation laid in the previous years and takes it forward. This is a budget that seeks to balance growth with fiscal prudence.