Higher fiscal deficit means increased government borrowing

Will Pranab deliver despite constraints

If you are cribbing about your job, people you have to work with, constraints in doing what you have to Canada Goose Jackets do just switch on the TV and you canada goose are sure to feel better. There is one unenviable job out there that Mr. Pranab Mukherjee is doing and the rest of the country is up in arms to canada goose factory sale judge his performance. canada goose clearance At least for some of you it just the boss.

Finance Minister Pranab Mukherjee listens to a question during a news conference in New Delhi May 27, 2009. REUTERS/B Mathur/Files

A Reuters report says, canada goose coats only thing going for Manmohan Singh government budget is that expectations are low However, the wish canada goose uk outlet lists and expectation reports seem to be doing canada goose coats on sale the usual rounds. buy canada goose jacket This budget at this juncture of economic and political crossroads, should focus on two things reducing fiscal deficit cheap Canada Goose and getting the economy back on the growth path. India fiscal deficit was very optimistically projected to be about around 4% to 5% in the last year budget. Against the projection, the actual fiscal deficit is close to about 8%, the highest in emerging Asia. Higher fiscal deficit means increased government borrowing, which canadian goose jacket means high interest rates, which means high borrowing costs for industries as well as the common man, which means lesser disposable income in the hands of the citizens and higher cost of products and services, which means lower growth rates, which in turn means stock markets don take off, which may result in erosion in investor value, which means many many more things.

So, high fiscal cheap canada goose uk deficit has resulted in reduced growth rates and therefore the focus of both of these together in the budget. Fair. How do Canada Goose Coats On Sale we cut fiscal deficit? Increase canada goose uk shop income and/or reduce expenditure, preferably both. uk canada goose Increasing income means increase taxes. He could increase direct taxes like the income tax rates, reduce exemption limits, disallow deductions permitted, and bring in more people into uk canada goose outlet the tax net.

But that is not populist. With the government diminished support from allies and the opposition getting stronger, though fragmented, non populist measures Canada Goose online will never go past the FM cabin, if at all it goes through his mind. Or he can increase indirect taxes bring in more services into the service Canada Goose sale tax net and increase excise duty.

That may face lesser resistance. An amnesty scheme like the VDRS that buy canada goose jacket cheap will help unaccounted money float back into the system may help. Reducing expenses can probably come from cutting down subsidies fuel, fertilizer and the likes. Fuel subsidies if cut now, canada goose black friday sale will canada goose uk black friday further throw inflation out of gear. Fertilizer subsidies too cannot go because that will trigger frenzied opposition from allies like Trinamool Congress. So, these seem more likely on paper than in the Parliament. Fiscal consolidation may continue to be a challenge.

Maybe FM can make a more realistic projection and that could be some face saving. On growth, big bang reforms canada goose store like FDI in retail look more a mirage in the horizon. But the not so big bang like on Canada Goose Online personal taxes increasing deduction limits under Canada Goose Parka Sec 80C (for investments) and Sec 24B (interest on home loans) given the increase in both property values and canada goose clearance sale interest rates or increase medical reimbursement Canada canada goose outlet Goose Outlet limit to Rs.50,000 from its existing Rs.15,000 may put more money in the hands of the aam aadmi. This may indirectly propel growth from increased retail spending and higher investments.

So, we https://www.jacketstock.com understand Mr. FM has his constraints. We only hope he would keep in mind the long term future of this country and its citizens rather than keeping watch over the short term while he signs off on the budget.