Episodes of fiscal stress are unpleasant. But, like war, they are necessary to separate the wheat from the chaff in governments expenditure profile. The growing overhang of debt servicing This year interest payments account for 89% of the budgeted fiscal deficit. The accumulated debt was incurred not to finance infrastructure or enhance investments. It is […]Read More FM plays Shylock with steely grit
A decadal “look ahead,” even as geopolitical, technological and environmental disruptions push uncertainty to worrying levels, closely resembles a fool’s wager. The upside, however, is an even chance of getting it right, just like everyone else. DOMESTIC POLITICS — The silence of stability Our biggest challenges will emerge from domestic politics. The political threats are […]Read More India till 2030- Testing the marginal utility of political stability
Amitabh Kant the CEO of NITI Ayog got a taste of the underside of celebrity status when his remark on there being “too much democracy in India” created a social media storm of protest. Mr. Kant clarified subsequently that the news coverage had omitted the latter part of his sentence “……. for it to be […]Read More Democratic overload
Indian Left Liberal intellectuals are letting their shallow ideological moorings show. They support the agricultural reforms initiated by the Union government, including the corporatization of agriculture. But they oppose letting big business own banks, reflecting the colonial disdain for “box-wallahs” (business). Yes, to agricultural reform, including corporatization Farmers in Punjab and Haryana — the “gold […]Read More Big business owned banks -a Trojan Horse?
The Union government has done well to resist being dragged into “bhed-chaal” (following the herd) by blowing up its fiscal balance beyond repair in the hope of a steep economic recovery. The case for continued fiscal rectitude The fiscal deficit (FD) is on track to increase to Rs 12.5 trillion this year. The expected GDP […]Read More Fiscal rectitude flows from resilient revenues