Elimination of subsidies must begin identifying the rich and not the poor. For example, during the Aadhaar Unique ID program, anyone earning more than 2 lakh automatically slimmed down from receiving cheap LPG or kerosene or diesel. This strategy has affected majorly the poor’s but not the riches; hence this should have been implemented on the riches first.

The next best thing the government should do is that to mandate the expenditure growth of fiscal consolidation, to 50 percent lower than the revenue growth every year till it is achieved. This is the best way to ensure long term fiscal consolidation. A satisfying fiscal consolidation would be a fiscal deficit of 3 percent of GDP or less. For example if the revenue is expected to grow at 15 percent next year, then the expenditure should come down to 7-8 percent. And if this is not achieved, then fresh taxes should be made obligatory or we can cut the unproductive expenses.

In this ever changing economy of India, the budget cannot be a one time event. Taxes, spending, and policies have to be changed whenever needed, as we have done earlier also by changing it in 2008-09 after the Lehman crisis. As said, the finance minister is not as accountant, but the country’s economic risk manager along with the Reserve Bank Chief. Thus the budget shouldn’t be rigid and living document which can be changed frequently to meet new confronts emerging from global and domestic events.