Interim Budget 2024: KV Subramanian foresees inflation control and fiscal focus

Interim Budget 2024: In the run-up to the eagerly awaited interim budget, poised to be announced in the next few hours, KV Subramanian, Former Chief Economic Advisor of India, has expressed confidence in the country's economic trajectory. Subramanian asserts that the Indian economy is on a promising path, marked by a robust 7.3 per cent development rate, controlled inflation, and a likely focus on addressing the fiscal deficit.

"This is a vote on account budget only and the economy is in the right direction, the 7.3 per cent development rate, and inflation is also under control," said Subramanian.

He also expressed optimism regarding the likely attention to be given to the fiscal deficit by the Finance Minister.

Women's welfare

Anticipating the budget, Subramanian hinted at potential measures geared towards benefitting women, underlining the  role played by public digital infrastructure in empowering citizens. He highlighted the government's focus on digital inclusion, emphasising the direct transfer of funds into people's accounts.

"Additional initiatives are expected to be introduced in the budget, with the government possibly incorporating measures specifically aimed at addressing the needs of women," he added.

The budget, in Subramanian's view, is expected to offer a roadmap for the country's economic trajectory, with hopes for an extended capital expenditure push. He highlighted the domination of the digital goods market by private companies in other nations, leading to monopolies and price hikes. In contrast, he commended the government's role in building public infrastructure, which has fostered broader adoption, mitigating concerns of market imbalances.

Recognising India's status as the world's fastest-growing economy, Subramanian drew attention to the declining working human capital in comparison to China and other nations. He asserted that India's developmental impetus will be driven by its young workforce.

"The development trajectory of the country is anticipated to be propelled by its young workforce," he said.