Budget a difficult balancing act: Rangarajan

NEW DELHI - Former Reserve Bank of India (RBI) governor C. Rangarajan said Finance Minister Pranab Mukherjee’s union budget presented in parliament Monday was a difficult balancing act.

On the one hand the government has to raise public spending to boost the economy and on the other hand fiscal deficit has to be controlled, Rangarajan said in a televised debate after Mukherjee finished his budget speech.

The economist said he was happy with the way the government expenditure was distributed in the budget, adding: Not only the level, but the composition was also well distributed.