People should stop having short-term expectations. The government, in its Interim Budget, has simply belied the unfounded expectations of the markets. What would one have expected anyway from a government just before the elections?
I’m an optimist in many regards. I feel the economy has now stabilised, though it will continue to operate below potential due to global concerns. The fiscal deficit too is bound to be high since the government is incurring a high expenditure with large subsidy bill and lower tax revenue. However, I believe that the economy will be back on track by 2010-11.
Saumitra Chaudhury, Chief Economist, Credit Rating Agency ICRA
