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Letter to BS: Direct cash transfer may weaken country's fiscal position

The stable rating will affect the election results too

Business Standard 

Fitch rating agency
Fitch rating agency

For the past 13 years, the hasn't improved. The main reason behind this is the fiscal weakness of the country. The government budgeted of Rs 6.24 trillion or 3.3 per cent of GDP in the financial year 2019 but up to November 2019, it will be Rs 7.14 lakh crore.

Now, in the financial year 2020 also, our country’s fiscal position is going to be weak because of direct cash transfer. Farmers’ loans have been waved off, income tax rebate has also increased up to Rs 5 lakh. The government has failed to improve the from 'BBB' stable outlook, though it implemented transformative reforms that have led to the stabilisation in the reforms rating. This stable rating will affect the election results too.

To improve it, the government must attain the target, generate more employment and strengthen the fiscal position of the economy by increasing revenue and decreasing expenditure.

Shubham Sharma, Bathinda

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First Published: Wed, April 10 2019. 21:05 IST