attention from the real problem he leaves behind. The fiscal deficit is a number. It represents the gap between expenditures and revenues that have to be bridged by borrowings. But borrowings are not bad if used for investment. The real issue is the revenue deficit – the gap between the government
11.00 AM Apr 2nd
or revenue deficit, he referred to more fundamental deficits: the governance deficit, the democratic deficit, the trust deficit, the moral deficit, the ease-of-doing-business deficit, and the safety and security deficit – among other deficits. He made his usual political point when he called the last 10
1.31 PM Feb 28th
the fiscal deficit, the real worrisome deficit – the revenue deficit – is unchanged in 2013-14 at 3.3 percent of GDP, and comes down only to 3 percent in 2014-15. So while Chidambaram expects the fiscal deficit to fall 0.5 percent from 4.6 percent to 4.1 percent, revenue deficit falls only 0.3 percent
2.58 PM Feb 17th
, but it is unreal, since it involves rolling over Rs 35,000 crore of fuel subsidies to the next year. And there could be more such accounting surprises once we read the fineprint. Second, real fiscal correction is far, far away, as the revenue deficit is still at 3.3 percent - same as in last year`s budget. Next
1.30 PM Feb 17th
models. Chidambaram’s red line is thus an effort to confuse you into believing that he is a stickler for prudence when it suggests no such thing. In fact, if at all any number ought to be given greater sanctity in the budget he will present later today, it is the revenue deficit – which measures
1.10 PM Feb 17th
on its core revenue deficit. Now it won’t. By chickening out, Rajan has flunked his test. He is making the same mistake made by his predecessor D Subbarao – giving the government too much of the benefit of doubt. He has eroded his own credibility as an inflation fighter.
11.33 AM Dec 19th 2013
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