The Kelkar test

The range of fiscal deficit numbers projected by Vijay Kelkar— from the no-reform scenario of 6.1 per cent of the GDP to 5.2 per cent with reform — will make it easier to map the Centre’s moves on reforms this year. Since Prime Minister Manmohan Singh has reiterated that he intends to stay the course, the benefit of the Kelkar standard is that it sets the stage for the PM’s words to be measured against his actions.

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