Fiscal discipline has taken a backseat in the latest annual Indian budget which contains many tinges of populism, noted Indian economist Eswar Prasad said today. Prasad, a professor of trade policy at the prestigious Cornell University, said there were no major measures in the budget that could stimulate private investment. "Fiscal discipline has taken a backseat in this budget, which contains many tinges of populism, as was to be expected in the run-up to a national election cycle," Prasad told PTI. "There are no major measures that could stimulate private investment, which has been notably weak even during the recent period of high growth," Prasad said.

However, the proposed new health insurance scheme and other measures that will in principle directly benefit the poor are welcome, Prasad said. "Although it is unclear how exactly some of these programs will be funded within the budget envelope," he said. US India Business Council (USIBC) president Nisha Desai Biswal said the Indian government has displayed its commitment to areas that will benefit India's growth and prosperity for many years to come.