New delhi: Indicating that the budget will not indulge in “mindless populism”, finance minister Arun Jaitley said on Tuesday that the government would pursue path of fiscal prudence to revive economy and will take bold decisions.
“If you indulge in mindless populism you burden the exchequer. You convert yourself into a high taxation society. It does not work. Therefore if you have to follow a path of fiscal prudence, (you should) have a certain amount of discipline,” Mr Jaitley said in his address at the ICAI function.
Finance minister said that the high fiscal deficit and inflation are major challenges for India. “It (populism) will be a one-way pat in the back by an ill-informed opinion and perhaps a long-term journey. We will walk into peril. That is a trap that will be difficult to get out of,” said Mr Jaitley.
Referring to predictions of weak monsoon and Iraq crisis, the finance minister noted that though these are challenges, they could be overcome. “We have huge amount of food, we have no scarcity and we are in a position to manage it. I think if we decide to go on that path, growth rates are going to pick up," he said. Mr Jaitley said improving current account deficit was the only sliver lining for the economy.
He also said that after three-four years of pessimism there is hope and now “bold decision-making” is possible.
