The Finance Ministry faces a tough balancing act in the Union Budget for FY21/22 as it aims to stabilise the public finances while avoiding economically and politically-damaging spending cuts. The most likely outcome is that it will set ambitious revenue targets and quietly shift some spending off-balance sheet, allowing it to present a smaller headline deficit. This may keep the bond market on the side for the time being. But obfuscation of the true fiscal position risks undermining credibility over the long term.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.