Logo


Arvind Subramanian: Fiscal prudence, now and here

India may need to start fiscal consolidation soon

Unlike the US and China, India may need to start fiscal consolidation soon. Should next month’s Budget, the first for the new government, start the process of fiscal consolidation or should this consolidation be deferred for some time? One perspective on this question is comparative. We could look at what, say, China and the US are doing and draw upon their experience to shed light on India’s situation. China has come down firmly on the side of continuing the fiscal stimulus it set in motion last year. In the United States, three views are competing for intellectual ...