22 hours ago
The Covid crisis makes "data driven" projections inaccurate, as the past provides zero guidance for the future.
It is important that the country now shift from a home ministry-driven administrative approach to an economic approach
India will have to address the big fiscal prudence challenge, which is not captured by the fiscal deficit/GDP metric
Coronavirus' genesis in China, and its transitive impact on global economic activity, portend important lessons for economists
It recognises it cannot afford space for expansionary fiscal policy
Of the Rs 102 trillion to be deployed through to FY25, 78 per cent is to be mobilised by the public sector and 22 per cent by the private sector.
For India to complete its development transformation, a switch to a broad-based and more inclusive composition of domestic demand is of the first importance
When relative prices do not serve the national good, then there is a case for government intervention, especially when distorted relative prices are a driver of macroeconomic slowdown
The question then is: On what should government spend this extra borrowing?
The government must announce a calendar for implementation of Friday's measures
While this is immediately clarifying for policymakers, a structural slowdown can be variously interpreted depending on one's analytical framework and understanding of the ground situation
The ability of government to shrink the expenditures in 2019-20 would severely strain attempts to maintain fiscal discipline
A medium-term macro-fiscal exercise will make clear the analytical choices and trade-offs that the government faces
The economic programme of any party or coalition that is serious about transforming India must be underpinned by four economic objectives
The fact that the only political response is to compensate those who bear the brunt of this failure is, in my view, an abdication of political responsibility, writes Rathin Roy