Business Standard

How will Modi govt handle revenue deficit without raising income-tax?

Next year's Budget will reflect many difficulties sprung by the coronavirus pandemic and many countries' currency-printing spree to keep employment high


T C A Srinivasa-Raghavan
The finance ministry and the Reserve Bank of India (RBI) have been grappling with a host of problems created by the virus that China exported. Often, the solutions to these have pulled in opposite directions. Next year’s Budget will reflect all these difficulties in full. So it is time to step back and make it with a framework in mind.
A major problem next year is global monetary irresponsibility, manifesting itself in a huge increase in the supply of dollars, euros, yens and yuans. The suppliers of these currencies account for 75 per cent of global output. This irresponsibility
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Oct 21 2020 | 8:40 AM IST

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