Lots of stuff can be fudged, but the fiscal deficit ultimately has to be financed by borrowings. So instead of quibbling over 3.3 or 3.5%, the borrowing requirement of six trillion offers a better sense of where we are. A coupon rate of 8% when inflation is benign, there is some tepid talk of a rate cut, will be a high rate of real interest for, not the government, but ultimately ordinary citizens to bear. 2. My heart tells me, Dr Rajan will be the next Finance Minister. He will have a lot on his plate. He should be given the political support Dr Singh was by PM PVNR, for he will face an almost equally grim fiscal and economic situation. Managing India’s economy calls for a high level of erudition and understanding, also the courage to act, not recklessly, but decisively.
Lots of stuff can be fudged, but the fiscal deficit ultimately has to be financed by borrowings. So instead of quibbling over 3.3 or 3.5%, the borrowing requirement of six trillion offers a better sense of where we are. A coupon rate of 8% when inflation is benign, there is some tepid talk of a rate cut, will be a high rate of real interest for, not the government, but ultimately ordinary citizens to bear. 2. My heart tells me, Dr Rajan will be the next Finance Minister. He will have a lot on his plate. He should be given the political support Dr Singh was by PM PVNR, for he will face an almost equally grim fiscal and economic situation. Managing India’s economy calls for a high level of erudition and understanding, also the courage to act, not recklessly, but decisively.