Boost jobs and stick to fiscal goals, economists advise FM

Staying on the path of fiscal consolidation and extending the production-linked incentive scheme to small and medium enterprises, as well as labour-intensive sectors to create jobs and boost consumption, were key suggestions discussed in Finance Minister Nirmala Sitharaman's meeting with economists on Wednesday.

- RUCHIKA CHITRAVANSHI & HARSH KUMAR

"Fiscal continuity should be maintained. The government has shown fiscal prudence and controlled fiscal deficit. This time, Revised Estimates (RE) also show positive indications," said Ashwani Mahajan, national coconvener of the Swadeshi Jagran Manch, while speaking to the media after the meeting.

The government had set the 2024-25 (FY25) fiscal deficit target at 5.1 per cent, or 16.85 trillion of gross domestic product, and revised the 2023-24 (FY24) target to 5.8 per cent from the earlier projection of 5.9 per cent. The fiscal deficit narrowed further to 5.6 per cent in FY24.

Economists emphasised that the Budget needs to focus on job creation and include policies directed towards generating more employment in the economy during the meeting.