With spendthrift Budget, India takes a wrong turn

Now the fiscal math is muddled, bond yields are spiking, RBI might have to raise rates in response and India is turning protectionist

India remains a land of missed opportunities. When Prime Minister Narendra Modi came into office in 2014, he raised hopes that he would reform administration, fix regulations, super-charge the economy and reinvigorate private investment. One can debate how much he’s accomplished on those fronts. But his record on one issue — fiscal restraint — had seemed impeccable. Helped by low crude oil prices, which meant the government could raise fuel taxes without political blowback, his administration largely maintained a deficit-reduction path set by its predecessor.

On Thursday, when Finance Minister Arun Jaitley presented the government’s annual budget -- which