Key Points
He expects continued focus on investment and fiscal consolidation in the budget, with the government achieving its targets through improved tax-to-GDP ratios and rising capital expenditure...
Former NITI Aayog vice chairman Rajiv Kumar on Wednesday said the government needs to continue its focus on capital expenditure in the upcoming interim budget, as private investment is 'still weak' and there is a need to bridge infrastructure gap, which has been 'plaguing' the Indian economy..
According to Kumar the theme of the upcoming interim budget will be continued focused on investment or fiscal consolidation.. Finance Minister Nirmala Sitharaman will present the interim budget on February 1 in the Lok Sabha..
Replying to a question on the government's medium-term fiscal deficit target, Kumar said, "We should stick to that target and it will require the finance minister to revive the asset monetisation programme and the public sector enterprise privatisation program, which will not happen in this budget because this is only an interim budget."..
According to Kumar, when the July budget is presented, then those two categories will be given due attention because it is only through that the government can reduce the public debt to GDP ratio.. "And once that goes down, then the fiscal deficit target can be achieved and that fiscal consolidation target can also be achieved," he observed...
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