The great expectations challenge

Instead of grand visions and big announcements, the Budget should have focused on managing expectations around the current economic cycle

There is a lot that needs to be fixed in Indian economy. Nirmala Sitharaman’s second Budget speech was never going to provide a solution to all problems. In fact, some of the most pressing structural reforms relate to the factor markets — amending land acquisition laws, changing labour codes and re­booting the banking system. The first two are clearly off Budget. The third has been addressed through recapitalisation but the key to reform is more structural, requiring ei­ther divestment or genuine autonomy, neither of which can be dealt with in the Budget.

The 16-point plan for agriculture which took considerable time