Disinvestment, Farsightedness: What Economists Want from Budget

Sajjid Chinoy, Chief India Economist at JPMorgan, reckons that government should focus on disinvestment this year.

Photo used for representational purposes.

(Photo: Reuters)

Ahead of Friday, 5 July, when Finance Minister Nirmala Sitharaman will present her first budget, eminent economists, just like common folks, have their expectations line-up from the government.

Speaking to BloombergQuint, Jahangir Aziz, Head-EMs Economic Research at JPMorgan, said, “The government should not try to lift the growth rate for six months or nine months, because that never really works. Given the mandate that they have, they should think of what should India's budget look like five years down the line, in terms of tax structure and expenditure,”.

On the other hand, Sajjid Chinoy, Chief India Economist at JPMorgan, said that the government should focus on disinvestment this fiscal year.

“Government should double down on asset sales. Last year, they sold half a percent of the GDP. If they sell 1 percent of the GDP this time, the fiscal deficit can be contained at 3.4 percent and the bond market wil be comforted. At the same time, since you are generating revenues through asset sales and not taxes, the fiscal impulse remains positive,” he said.

(With inputs from BloombergQuint)