The deputy chairman of the Planning Commission, Montek Singh Ahluwalia, spoke to Outlook soon after the budget. Excerpts:
What does the step-up in demand for stimulus and increased government spending really mean for India’s long-term financial planning?
The key thing is that we should be able to finance essential developmental expenditure while also being fiscally responsible. The budget has outlined a reduction in the fiscal deficit for the current year and a further planned reduction thereafter. The government is clearly signalling that it is committed to a path of financial prudence.