Is the extent of fiscal adjustment enough? - S.S.Tarapore

Setting up yet another public sector bank, even if it is exclusively for women, is a scatter- brained idea, which should be unceremoniously discarded. The Rs 1,000 crore allocated for this purpose could be better utilised to support self- help groups and co- operatives organised for women.

.....With the growth rate in 2012- 13 at a low of around 5 per cent, the balance of payments Current Account Deficit ( CAD) hovering around 5 per cent of the GDP and the consumer price inflation in double digits, the central question which needs to be addressed is whether the fiscal adjustment set out in the budget for 2013- 14 is enough? On an instant analysis, India Inc. would breathe easy, though the predictable grumble would be that more incentives should have been provided to the industry to stimulate growth. With the sprinkling of some goodies, the Common Person would be appeased, but the unanswered question would remain as to whether the Common Person would see a significant and enduring reduction in the inflation rate.........

Read - FPJ