Relief Delivered: Fiscal Sustainability in Question

The Pathfinder Foundation (PF) has been consistent in its call for prudent fiscal management and market oriented policies. In Economic Alert no: 67 titled ‘The Election Manifestos: An Auction of Non-existent Resources and Beyond’, it highlighted the populist nature of the manifestos of the two main candidates and the need for fiscal discipline. The subsequent Economic Flash 57 titled ‘Economics of the 100 day program: Word of Caution on Populist Measures’ developed upon the same theme. This piece seeks to assess the Interim Budget presented by the new government last week, from both a short and medium-term macroeconomic perspective.