Since 2016, the govt has tried various fiscal tactics to stimulate growth, from increasing expenditure to introducing welfare schemes. The tax cut is the latest of these measures.
In Episode 1597, Editor-in-Chief Shekhar Gupta discusses NITI Aayog's latest Fiscal Health Index report, how states are doing & and other key takeaways.
India has a large vertical fiscal gap, which has been increasing. The reason is that while the Constitution assigns the most buoyant taxation powers to the Union, it allocates more spending responsibilities to the states.
IMF has found that countries going for polls tend to see significant slippages in fiscal targets. Analysis by ThePrint finds India has been bucking this trend over last 20 years.
Depositors seem to believe that public sector entities will not default. There is a perception that they are guaranteed by their respective state government or ultimately the Union.
While the Russia-Ukraine war saw the BJP projecting PM Modi as a ‘vishwaguru’ who could end international conflicts, the party has made a nuanced shift in its electoral strategy vis-à-vis the West Asia war.
It’s easy to understand why the government can’t speak the hard truth. When this war ends, as all wars do, India’s interests will lie with both the winner and the loser.
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