governance, political economy, institutional development and economic regulation
High growth generates the comfort of public unwillingness to look a gift horse in the mouth. When growth is more than double the global levels and the highest achieved by any comparator entity, there are even fewer quibbles. This is true for both startups and national economies. Both are subject to “analyst fog” about an […]
Read More Interim Budget 2024-25: Government a prisoner of over-reach2020 was the year of fear as COVID-19 decimated the economy and killed people–both rich and poor– seemingly. 2021 was the year of hope. The bite of the pandemic dulled, thanks to the massive vaccination program, ramped-up emergency medical facilities and the roll-out of special social protection measures like free cereals for 800 million citizens. […]
Read More India vignettes from 2022 and beyondBudgets reflect the economic philosophy, near-term political economy pressures, and the long-term vision of a government. A review of budget metrics (table below) across the twilight years of the Manmohan Singh UPA government and the Modi government reveals a surprisingly elevated level of similarity, despite differentiated specific outcomes. In plainer words, the rulers changed but […]
Read More The Modi budgets- High achievements sans institutionalised changesThe drama and spectacle around Budgets in India are completely undeserved. More than four-fifths of the Union Budget demands relate to expenditure that is carried through from past decisions, leaving little leeway for bold new outlays. And even when such programmes are budgeted, it is unclear who is going to pay for the added expense. […]
Read More Budget Fy 2023 – Saying sorry is okThe dominant view is dire on the impact of the proposed roll back of the three Farm Laws, enacted in haste in 2020, even as the pandemic raged. Opinion is divided whether it is proof of the government’s shallow commitment to deep reform or that it proclaims doom for agriculture, which has committed Hara-kiri by […]
Read More The upside of farm laws repealThe tragic snafu over making sufficient oxygen available to meet the spike in demand from COVID-related morbidity is a red flag for an underlying malaise—of overlapping mandates, state governments enfeebled by decades of Union government spoon feeding, and under capacitated local government. Sadly, state governments have voluntarily accepted this hollowing out of their core functions. […]
Read More Repurposing governance- trim the fat in state governmentsBengal, Kerala and Tamil Nadu — all awaiting new governments in early May this year — are the last bastions of strong linguistic and cultural regionalism which have resisted the mainstreaming of politics under BJPs “one country one party” theology. Assam capitulated in 2016 and is expected to remain within the BJP’s fold in May […]
Read More Indian regionalism- past its expiry dateOn the eve of the 2021-22 budget presentation, Finance Minister Nirmala Sitharaman has clearly earned her spurs just two years into the job. A coordinated collection tax effort revives revenue receipts in Q3 Despite the economy being somewhere between 15 to 8% below last year’s level all through Q3 (October to December) this year, cumulative […]
Read More FM Sitharaman earns her spurs raising expectations sky highDespite receipts being 18% lower than even last year till November, largely because of the yawning gap against the aggressive budget estimate for disinvestment receipts (Rs 2,1 trillion), the Union government did well to spend almost 5% more than last year by enhancing borrowing. This is in the best traditions of trying to keep the […]
Read More Budget for hope, build resilient foundationsDespite the hoopla around this year’s annual budget, it is unlikely to be a stunning display of “clever accounting” catering to all whilst pleasing none. Nor is it likely to strew goodies all around. Challenges abound The need is to spell out hard fiscal decisions. The list of challenges is long. The interest burden consumes […]
Read More No room for extravagance in 2021-22 budget
Opinion India 