Thoughts on Budget and monetary policy

Beyond hype, if the Budget creates a platform for growth, the RBI will have to change the policy's stance, but that won't happen - now or even in April

Three days after the much-hyped Union Budget, the Reserve Bank of India (RBI) will announce its February monetary policy, the last for fiscal year 2021. 

As the economy is in a recovery mode, a non-disruptive Budget is par for the course. The welfare measures should continue and, at the same time, it must explore ways to boost consumption to keep the momentum going. While no cut in income tax is warranted, excise duty on oil could be pared. Rising tax revenue will neutralise its impact on fiscal health. 

One can expect steps to boost the speedy recovery of bad loans,