The best thing one can say about the new Budget is that it is better than the earlier Budgets presented by Pranabda. The Budget is clearly drafted with an eye on keeping the aam aadmi khush, at the peril of ignoring economic imperatives. The biggest peril is the double edged sword of oil subsidies. Withdrawing them would be politically disastrous and will fuel inflation which is already riding high on buoyant food prices. And increasing or maintaining the subsidies will bleed the oil PSUs further.

Although the new budget is geared to consolidate the fruits of liberalization and the resultant economic growth, many questions about fiscal discipline remain unanswered. With economic r

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