 "The fog of fiscal finances")
A fog has set in over New Delhi, and it is not just weather related. The fiscal outlook for the medium term seems unclear.
It began in 2018, when the much-needed new fiscal rules (Fiscal Responsibility and Budget Management — FRBM) were enacted in Parliament. They make public debt the main anchor of the fiscal framework. They stipulate that overall (centre plus states) debt should not exceed 60 per cent by the end of FY25, down from over 70 per cent now.
So far, so good.
The inconsistencies began when, around the same time, several new spending
It began in 2018, when the much-needed new fiscal rules (Fiscal Responsibility and Budget Management — FRBM) were enacted in Parliament. They make public debt the main anchor of the fiscal framework. They stipulate that overall (centre plus states) debt should not exceed 60 per cent by the end of FY25, down from over 70 per cent now.
So far, so good.
The inconsistencies began when, around the same time, several new spending
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