Budget focuses on structural issues, not populism: Bibek Debroy

New Delhi: Prime Minister's Economic Advisory Council chairman Bibek Debroy on Thursday welcomed the announcements made in the Union Budget 2018-19, saying it focuses on agriculture, rural economy, healthcare and employment generation instead of following economic populism.

He emphasised that the government was committed to following the path of significant structural reforms and the budget is a step in that direction.

"The budget focussed on the structural issues of the Indian economy especially the agriculture sector and rural economy instead of following economic populism," said Debroy as per a statement.

"It has emphasised upon the need to give a boost to overall growth by giving impetus to the rural, agriculture sector, health and education. The government has allocated the sum of Rs 1.38 lakh crore towards health, education and social protection."

Terming it a milestone step towards achieving the Universal Health Coverage, he lauded the proposal of launching the National Health Protection Scheme intended to cover 10 crore households with an insurance cover of Rs 5 lakh per family. 

Debroy said the upward revision of fiscal deficit from 3.2 per cent to 3.5 per cent will not affect India's macroeconomic stability.

At the time when "the growth rate is suffering due to private sector unwillingness to invest, it had become a necessity for the government to start the investment cycle through public investment", he said.

"The government investment in key productive sectors like infrastructure, health and education will crowd in private investment in the years to come."