This Budget 2012, shift govt spending focus from consumption to investment

With Pranab Mukherjee's budget just a week away, all eyes are on the big budget numbers: fiscal deficit, subsidies, tax increases and concessions.

However, Dr Ashima Goyal of the Indira Gandhi Institute of Development Research in Mumbai told Firstpost's R Jagannathan that it is not the raw numbers that matter to fiscal consolidation, but the quality of the adjustment.

Reuters

To deal with inflation, the government has to fix supply side issues in food and infrastructure, but this needs a supportive kind of fiscal consolidation.

According to Goyal, government spending has gone towards consumption, and this needs to shift towards investment.

Watch the whole Firstpost interview here.

See more Budget 2012 videos and expert views on Firstpost: Ajay Shah, Rupa Rege Nitsure, Indranil Pan, Surjit Bhalla, Jim Walker.