Raghuram Rajan has repeatedly asserted that fiscal consolidation is a necessary pre-condition to further lowering of bank rates. His back-room boys must be looking at the budget numbers to ascertain how credible Jaitley's numbers are — they are a lot better equipped to do so than I! At first glance, though, I do find the projections of a 19.5% increase in indirect taxes, and a 25% in service tax, somewhat optimistic. If Mr. Rajan seems convinced, though, and announces a rate cut, it will have a dual impact on our markets. It would give a stamp of credibility to the budget estimates. And it would make it easier to repair balance sheets, of both borrowers and lenders.