Fiscal deficit is already elevated and cannot be cranked up further – the high inflation and current account deficit make it undesirable as well. How will FM meet the challenge when she presents the budget next month?
A look at the challenges and the options:
How can funds be raised without fiscal profligacy?
- Pursue aggressive privatisation: There is a good pipeline, a concerted push needed.
- Asset monetisation can support capex without burdening budget: Clear tax policies to allow for asset monetisation.