Budget 2020: Reform Agenda Continuity, Says PMEAC Member Ashima Goyal
Pedestrians cross a street in the old town of Lucknow, Uttar Pradesh. (Photographer: Prashanth Vishwanathan/Bloomberg)

Budget 2020: Reform Agenda Continuity, Says PMEAC Member Ashima Goyal

India has chosen to signal continuity of its reform agenda in this year’s Union Budget, at a time when they were expected to boost consumption amid a revenue shortfall, according to Ashima Goyal, member of the Prime Minister’s Economic Advisory Council.

The finance ministry has chosen to pursue investment over consumption since investment has larger multipliers, Goyal told BloombergQuint in an interview.

That said, the budget doesn’t have enough (fiscal) space to give a lot towards investment, she said. “So they’re leveraging what they can give, through various financial instruments, state government investments and PPPs (public-private partnerships) etc.”

The budget also included counter-cyclical elements, she pointed out. “The fact that this government has been able to maintain expenditure despite a steep fall in nominal income compared to their forecast, suggests that.”

Watch the full interview with Ashima Goyal, here:

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