A V Rajwade: Budget and infrastructure investment

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A month from now, Finance Minister Arun Jaitley will present his Budget for the 2016-17 fiscal to Parliament. One expects the Indian Financial Code to get enacted along with the Finance Bill. For the former, the minister has already announced his intention to limit the deficit to 3.5 per cent of nominal gross domestic product (GDP); for the second, while the principle of inflation targeting as the sole objective of monetary policy seems to have been accepted, the issue of composition of the Monetary Policy Committee and the Reserve Bank of India governor's veto power still seem to be under consideration.

As the Financial Times emphasised in an editorial on January 22, "India needs to create jobs for a fast-growing workforce and lift large numbers out of poverty", one major hurdle in