12 February 2018
areas where I gave relief were based on their economic rationale and not some political calculation.”
on the whole, Jaitley expressed confidence in the Indian economy. he said that India was past its
high-inflation era and the price-rise target of 4 per cent set by the Government and central bank was
achievable. higher prices of oil and vegetables, apart from increased housing allowances handed
out by the seventh Pay commission, had posed some problems in keeping inflation under control,
but price levels in general could no longer break loose.
Given the extremely competitive nature of Indian politics, it is hard for a government to resist
populism as elections approach. the only limits on this tendency are the caps imposed by govern-
ment revenues. even that does not deter some regimes as they go on a borrowing binge to spend
more. the restraint demonstrated by the Finance Minister is therefore all the more remarkable.
the emphasis on trying to reduce rural distress and allocating more money to that sector is best
described as pragmatic. After all, India still lives largely in its villages. n
“to gIve a small
subsIdy to a
small sectIon and
have ramshackle
Infrastructure
does no servIce
to the country”
arun Jaitley25 26