What makes this year’s Budget critical ?

A combination of global headwinds and stalling internal momentum makes this year’s Budget particularly critical. It will demonstrate whether the administration is willing to accept a degree of risk in order to pursue growth through pump priming, or stick to a safer course of fiscal consolidation. The arguments appear strong on both sides but we believe the desire to revive growth may be overriding due to global conditions. Recent market volatility has wiped out USD 3.2 trillion of global wealth sending investors into a sulk, while rising bond spreads indicate waning risk appetites across the board. Only nations with strong growth prospects can hope to attract capital at such times. – IMA


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