Rewarding profligacy
One would expect those who commit excesses to be penalised. But this rule does not seem to apply to the Government for its profligate ways. Four months ago, towards March-end, yields on its 10-year borrowings ruled at 8.63 per cent. Given its record of not taking any credible steps to check spiralling subsidies and other unproductive expenditures, these ought to have gone up in the current fiscal. Instead, in a recent auction, the Government has managed to raise a 10-year loan at just 8.11 per cent.