Fiscal deficit: The twin evil
The singular obsession with reducing India’s current account deficit (CAD) has blinded us to its ‘twin’: the fiscal deficit. True, the CAD is the immediate problem; Finance Minister P. Chidambaram was not wrong in noting in his Budget speech that it was his “greater worry”. At $88.2 billion or 4.8 per cent of GDP in 2012-13, the CAD has been the prime cause for the rupee’s downward spiral.
Read Full Story>>