Indian Union Budget has come out today. The government seems to be taking no chances with reforms now. Most of their past experiments have failed miserably and have dented the economy. These included RERA, MMDRA, Agriculture Bill and others that have just brought one disaster or the other.
The experts underlined that the success of fiscal math hinges on the success in achieving the Rs 1.75 lakh crore (Rs 75,000 crore from disinvestment and Rs 1 lakh crore from selling government stake in public sector banks and banks) disinvestment targets. These are not likely to happen. The fiscal deficit has doubled last year and there is no scope for anything coming close to the disinvestment targets.
There is a wishful thinking that higher growth will result in greater savings, the exact same could fund increased government expense, which is not likely to happen. While the world is increasing stimulus, there is an indication that the government may be withdrawing the so-called stimulus soon which may impede whatever growth they are hoping for.
This government does not regard Union Budget as something holy but keeps tinkering with the government system every month. While the taxes have not been increased in the budget, a random announcement in this regard cannot be ruled out.