New Delhi, Feb. 3 -- The budget this year came in the background of an economic slowdown led by weak urban consumption and lower government capex. Hence, finance minister (FM) Nirmala Sitharaman was expected to stimulate growth while continuing on the path of fiscal consolidation. The budget has delivered on this by incentivizing urban consumption through tax cuts while continuing on the path of fiscal consolidation.

More importantly, by shifting the anchor of fiscal consolidation from fiscal deficit to debt to GDP, the FM has created room for stimulating capital spending from next year. Hence, the budget has addressed both near-term and medium-term growth concerns while continuing on the path of reducing debt to GDP over the long-term....