Debt-dependent budget poses challenge to fiscal discipline: Dr Debapriya Bhattacharya

Debt-dependent budget poses challenge to fiscal discipline: Dr Debapriya Bhattacharya

The budget's heavy reliance on foreign debt and large lump-sum allocations across various sectors could pose challenges to fiscal discipline in the future, eminent economist Dr Debapriya Bhattacharya has said. He made the remarks while speaking to reporters after coming out of the budget session in the National Parliament on Thursday afternoon, June 11.

Dr Bhattacharya said the budget's success will ultimately depend on its effective implementation. While the budget mentions efforts to build a humane economy with allocations for youth and marginalised communities, the financial framework created by the government to implement these economic policies is extremely weak.

The economist noted that the budget has prioritised important issues such as liberalisation, building a humane economy, and digital inclusion. However, he believes the financial foundation necessary to implement this strong policy framework is not sufficiently robust.

He added that the biggest test in the coming days will be how efficiently the government can implement this budget while maintaining the continuity of reforms.