Be consistent in accounting: Govt should not ignore costs of bank recap

It is very important that the government transparently and accurately report its fiscal deficit target

The fiscal deficit number in the Union Budget is always keenly watched, and for good reason. It is a measure of government profligacy, of whether public debt and inflation will experience upward pressure, and of whether the private sector will get crowded out of borrowing. This year, there is higher-than-usual interest because many influential voices have called for a pause to the fiscal consolidation process to combat growth challenges. In addition, the approaching Assembly elections, as well as the general elections in 2019, mean that there is a political incentive to turn on the spending tap. It is very important,