Three good pieces on the interim budget (vote-on-account) presented by the Finance Minister of the Government of India. One is by Swaminathan Aiyar who focuses on the assumptions behind the projected deficit numbers. They are simply plugged out of thin air. Neither the expected nominal GDP growth nor the revenue elasticity of that projected nominal growth rate are realistic. Perhaps, tacitly, the Finance Minister has conceded that, under a new dispensation, the economy will revive like a fully wound up coil.
Bibek Debroy’s last sentence says it all about the reign of Mr. Chidambaram as the Finance Minister. On the face of it, the FM had changed for the worse, from a governance standpoint, from the 1990s. Was he less discretionary in the 1990s?
Varun Gandhi’s Op.Ed in ET is well written. But, it has no solutions. Of course, the underlying internal BJP dynamics behind VG writing these ‘sophisticated’ op.-eds is an interesting side story in itself.