Fiscal capacity facilitates larger investments

Unfortunately, a great opportunity to bring down the general tariff rate has been lost

The Budget speech of the finance minister was delivered in the background of an economy that has just reached the absolute levels of GDP recorded at the end of March 2019. Therefore, the objective is to really strengthen the growth impulses and steer the economy on a path of at least an 8 per cent plus real GDP growth rate in the medium term. The minister in her strategy has put her faith in ramping up capital investment by Rs 2 trillion and topping it up with an additional Rs 1 trillion of support to the states. The fiscal flexibility