-Business Standard/ NIPFP Strap: It recognises that the medium-term fiscal arithmetic does not afford space for expansionary fiscal policy In my column on the FY20 Budget (A silent fiscal crisis, July 5, 2019), I had warned that the government faced a structural fiscal constraint that was concealed by using incorrectly optimistic numbers for revenue receipts. This year’s Budget is transparent. But the government continues to be heavily fiscally constrained due to inadequate...
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Dig holes and fill them up -Surajit Das
-TelanganaToday.in Follow the Keynesian policy and go for larger fiscal deficit that puts more purchasing power in people’s hands Finance Minister Nirmala Sitharaman will present her second Budget on February 1 amid a slowdown in GDP growth and an increase in the rate of unemployment. Even supply-side economists are acknowledging that the current situation is because of the problem of aggregate demand. The demand-side economists, anyway, have been arguing for expansionary...
More »With a huge informal economy, government should increase spending, not worry about deficit -Maitreesh Ghatak
-The Indian Express To get the engine of the economy revving, an expansionary fiscal policy that harnesses the energy of the informal sector to boost aggregate demand is the order of the day. That India is in the midst of a serious economic slowdown is no longer in question. The debates are now mostly about what to do about it: Whether to opt for a Fiscal Expansion to boost demand or to...
More »Reality check: on govt projecting slower GDP growth
-The Hindu Misplaced optimism needs to cede ground to tangible policy interventions The government’s advance estimates for economic output and growth for the fiscal year ending in March may raise eyebrows, but only for the wrong reasons. The National Statistical Office (NSO) has estimated that Gross Domestic Product (GDP) will expand by 5% in the 12-month period, in line with the Reserve Bank of India’s sharp downward revision last month in its...
More »CII suggestion to Revenue Secy: Focus on consumption, investment
-The Indian Express CII recommended adoption of an expansionary fiscal policy to allow fiscal deficit to increase by around 0.5 per cent to 0.75 per cent of GDP, which will give government additional fiscal space of Rs 1.1 lakh crore to Rs 1.6 lakh crore. In a pre-Budget consultation meeting with Revenue Secretary Ajay Bhushan Pandey, the Confederation of Indian Industry (CII) shared its pre-Budget Memorandum recommendations, focusing on providing impetus...
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