Instead, should countercyclical fiscal policy become part of our policy lexicon to be used judiciously, but unapologetically? The clamour for fiscal stimulus is, incidentally, not a product of the Covid pandemic. Synopsis Thus, it might be prudent to go the extra mile to consolidate debt when the economy is booming. A way to formalise this … Read more
The budget has laid the foundation for high growth over this decade, chief economic adviser Krishnamurthy Subramanian said. In an interview with ET, he said the fiscal policy should be counter-cyclical. Edited excerpts: The Economic Survey called for fiscal relaxation. Does the budget go far enough in that direction? The survey has called for counter-cyclical … Read more
One of the most enigmatic elements of GoI’s approach towards the Covid-19 pandemic has been its dogged conservative approach towards fiscal management this year. We have seen how in the first half of 2020-21, when the economy was ravaged the most by Covid, central government spending was lower than it was in the corresponding period … Read more
One can never rule out downside risks completely, but in terms of just putting weight one can say that the upside potential is greater, says Chief Economic Adviser K V Subramanian. Edited excerpts: Let me first begin by asking you about your 11% growth projections. Of course it is in line with the IMF’s estimate … Read more