Budget 2026-27: Analysts Urge Focus on Supply-Side Reforms Over Short-Term Fiscal Fixes
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Firstpost•01-02-2026, 10:55
Budget 2026-27: Analysts Urge Focus on Supply-Side Reforms Over Short-Term Fiscal Fixes
- •Analysts, including Arvind Sanger of Geosphere Capital Management, recommend the Union Budget 2026-27 prioritize supply-side reforms.
- •Supply-side reforms aim to enhance an economy's productive capacity, offering long-term structural benefits unlike short-term consumer-side interventions.
- •Sanger suggests that India needs continued supply-side reforms to revive economic activity, even if it means a slightly higher short-term fiscal deficit.
- •Foreign investors face challenges in India, such as double taxation for those without treaties, which Sanger describes as uniquely punitive.
- •Deloitte India economist Rumki Majumdar emphasizes supply-side improvements to sustain growth, attract private investment, and rebuild global investor confidence.
Why It Matters: Budget 2026-27 should prioritize long-term supply-side reforms to boost economic growth and investor confidence.
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