A more convincing Union Budget: Chief economist Devendra Kumar Pant

Unlike previous years, FY22 Budget assumptions appear to be plausible and its fiscal arithmetic convincing. The Budget has tried to support the incipient economic recovery by giving a push to capex. As a result, capex is budgeted to grow 26.2 per cent in FY22 on top of a 30.8 per cent growth in FY21 (RE).

A nominal GDP growth of 14.4 per cent against a 4.7 per cent contraction in FY21, net-tax/GDP ratio of 6.93 per cent (FY21: 6.90 per cent), a decline of 231bp in revenue expenditure/GDP and a capex/GDP of 2.5 per cent (highest in 17 years) also look