November 9, 2024
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Budget Pleases Economists

India’s reform-minded prime minister, Narendra Modi, appears to have passed a major test with a budget that pleased economists and investors with pledges to spend more on modernising India’s ageing roads and railways while keeping borrowing in check. The budget presented by Finance Minister Arun Jaitley on Saturday loosened the reins on public spending to drive growth, but promised lower-than-expected borrowing despite raising the fiscal deficit target. While it was short on the “big bang” reform measures that free-market champions have been calling for since Modi took office with a strong mandate last year, the budget won plaudits for moves to cut corporate tax and make India more competitive.

Denisha Sahadevan

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