Saturday, February 20, 2010

Don't overdo fiscal consolidation

That's the title of my latest ET column. Yes, fiscal consolidation must happen but thee's no need to rush it until a full recovery has taken place.

In the long run, we need to take a fresh look at what level of consolidation of desirable.First, we need an accutate target for the fiscal deficit, one that factors in the off-budget deficit elements as well. Secondly, the target needs to be realistic- it must take into account the very real expenditure needs that will arise in the years to come, the prospect of the Indian economy moving onto a growth trajectory of 8-9% and the ups and downs of business cycles.

My sense is that the present limit of 3% for the fiscal deficit/GDP ratio, each for the centre and the states, is not realistic.


Neha said...

Nobody ever thought it was possible. A career portal that is dedicated to Women Job Seekers!!! Yes, you’ve got it right. Naukri For Women [Dot] Com a career website that is targeted specifically at the women in India. aims to be the first job site in India that is dedicated to bringing to you “WOMEN-ONLY” jobs and nothing else!

Anonymous said...

can u plz add follower application in ur blog...thank u...

Anonymous said...


Well articulated indeed, but with States' finances in not too good shape and carrying significant deficits, should we not go for a small tightening? Also I would love to hear from you, your views on how to resurrect state finances and do you see de-centralization and more financial responsibility to states as we go forward.

- KRK Mohan

Anonymous said...

Good post and this mail helped me alot in my college assignement. Say thank you you as your information.

Anonymous said...

This post reminds me about the old days of good blogging. If you can please visit my site [url=]kitchen cheap[/url]

Anonymous said...

Smаll Cookіng Kitchen aρpliances. Oil sealing is among fragіlе аcсеѕsоries.
SKF tuгboсharger ball bearіng is a kind of powerful and аgency іtem of tremenԁouѕ precіsion.

Thеy are аble to take radiаl anԁ thrust lοаds.
The ρrecіѕe bеarings utilizеd іn the agriсulture mаy to
ѕomе dеgrеe be determіned through the eхаcting machinerу howeveг usually
speaκing the rolleгѕ fог bеaring rеquіrе to be eхtremely dеѵeloρеd
thrоugh perfеct sealіng as well as hаve thе capabіlity of standing up to hard condіtions.

Look аt my page :: SKF Spherical Roller Bearings

Anonymous said...

tory burch shoes sale huuzjwju Cheap Tory Burch shoes ivmcdhmm Tory Burch outlet online asivxwqo discount Tory Burch shoes pprwuuwm Tory Burch outlet sale daqabzau Tory Burch Boots fxlmgvgw Tory Burch Flats tqslpxsz Tory Burch Flip Flops obvgepft Tory Burch Handbags rdlqplax Tory Burch Heels wicndeoj Tory Burch Reva Flats zcrvswin Tory Burch Sandals vzdsdpxy Tory Burch Wallets kjdixbwl Tory Burch Wedges zoypybwh