ALSO READBudget 2018: Avoid ambitious fiscal deficit targets, says Economic Survey Budget 2018: FRBM panel's 3% fiscal deficit target obsolete- Arvind Subramanian Bollywood's famous dialogues and songs find place in Economic Survey Eyes on Economic Survey 2018 as Budget Session of Parliament begins today Fiscal deficit, growth and employment
Pacing behind two major reforms, Budget 2018 would negotiate rougher monetary and fiscal edges. The fiscal deficit has spilled over with predictable revenue dips, to be now faced with a rising crude bill. The thrust on increased agro sector spends is unavoidable. Substantial outlays for the education and health sectors are called for on pressing demands; on skill levels imposed by modern technology and that of keeping our prized demographic dividend healthy to maintain efficiency. With interest rates rising in leading economies we may have little choice but to follow suit.
In any case incremental corporate investments have been inelastic to rates for many quarters. Rising key rates will reduce existing corporate bond values and increase cost of their borrowings. Fiscal incontinence would skew it further.The burden of investment for growth must revert to the government and a fiscal overreach is inevitable. A measured fiscal breach may not be hard to sustain as the Economic Survey finds the economy robust overall. Is not Trump daring to ride the fiscal dragon to capture growth? Ravi Narayanan, Navi Mumbai
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