Advertisement
Monday, Sep 20, 2021
Outlook.com

Dream Budget, Hard Reality

Sound monetary and exchange policy is crucial to growth

Dream Budget, Hard Reality
Dream Budget, Hard Reality
outlookindia.com
-0001-11-30T00:00:00+05:53
There is angst all round, especially among economists who had fearlessly forecast boom times for the economy after P. Chidambaram's shockingly positive budget for 1997-98. Now, amidst the debris of the United Front lies the moribund economy, and the knives are out in search of the liberalisers. Hah! We told you so; liberalisation can't deliver the goods. And if you don't believe us, just look at East Asia.

The facts are clear. The economy has slowed to about a 4-5 per cent growth, a steep decline from the above-6.5 per cent growth in each of the last three years. While there is some nonsense talk of a recession, it is more accurate to term it a growth recession—a decline in growth below its normal trend. The inflation rate has also declined—something that most commentators have noted, but not analysed. The wholesale price inflation is at a 20-year low of about 3.5 per cent—a decline of 3 per cent over the last year. Consumer price inflation has declined by over 4 per cent in the last year and is now hovering around 4-5 per cent.

The fact that the...

Advertisement

Outlook Newsletters

Advertisement

Read More from Outlook

How Charanjit Singh Channi Emerged As Punjab's First Dalit Chief Minister

How Charanjit Singh Channi Emerged As Punjab's First Dalit Chief Minister

The game changed in the last minutes as the names for the CM and Deputy CMs changed in the last 24 hours and Charanjit Singh Channi emerged as Punjab's first Dalit Chief Minister.

India To Resume Export Of Surplus Vaccines Next Month Under 'Vaccine Maitri'

India To Resume Export Of Surplus Vaccines Next Month Under 'Vaccine Maitri'

Health Minister Mansukh Mandaviya said the government will receive over 30 crore doses of COVID-19 vaccines in October and over 100 crore doses in the next three months.

HDFC Partners With PayTM For Reviving Credit Card Business

HDFC Partners With PayTM For Reviving Credit Card Business

RBI had instituted an eight-month ban on HDFC from issuing new credit cards in December 2020, the move is aimed at reviving the lost ground due to the ban

We Have Zero Tolerance For Corruption: Amazon's Response On Bribery Allegations

We Have Zero Tolerance For Corruption: Amazon's Response On Bribery Allegations

The e-commerce retailer was responding to a report alleging a certain amount paid by Amazon in legal fees have been used to pay bribes by one or more of its legal representatives.

Advertisement