Fiscal deficit target should be realistic: ICRA

Fiscal deficit target should be realistic: ICRA

"Budgets should be seen as an exercise in fiscal accounting, not a platform for necessarily announcing reforms, which can be rolled out at any time during the year," said Aditi Nayar, Principal Economist, ICRA. 

"The success of budgets should not be assessed on the basis of the number and magnitude of the reforms that have been announced," Nayar said.

In the upcoming Union Budget for FY2022, Nayar said she would like to see credible revenue assumptions, transparency in expenditure, and a realistic fiscal deficit target.

"While the economic, and by extension, revenue outlook remains uncertain, the fiscal deficit target should be realistic, whether it is in the form of a point estimate or a range," Nayar said.