Budget will test if govt can live within its means: Walker
'The government has boxed itself into a corner, where the only priority is fiscal consolidation,' Walker told Firstpost in Hong Kong.
The government's ability - and willingness- to live within its means will be on stern test in Budget 2012, but going by its track record, the budget will disappoint, says Asianomics founder Jim Walker.
"The government has boxed itself into a corner, where the only priority is fiscal consolidation," Walker told Firstpost in Hong Kong. And if fiscal consolidation is not No 1 priority in this budget, the RBI will be unable to deliver the growth stimulus that is required - interest rate cuts - and the government can forget about economic growth, he cautions.
With Parliamentary elections just two years away, and a mammoth money-guzzling Food Security Bill on the anvil, don't expect the govt to tighten its purse strings too much
The budget is just two weeks away. Here's the first of our four-part series of primers so that you are one-up on Pranab Mukherjee on 16 March