But no matter what the finance minister does in his budget, he will end up stoking some kind of inflation. The despite the recently released February inflation figure of 6.95 percent, which was below expectations.
Cutting subsidies means higher prices for fuel and fertiliser; withdrawing the excise/service tax stimulus of 2008 means higher prices of goods and services. A new Food Security Act means more food will have to be procured, and this means raising food support prices.
If any effort in reform means raising prices, how will inflation ever subside? Reuters
So if any effort in reform means raising prices, how will inflation ever subside?
A panel of economists that Firstpost spoke to debates prospects for inflation in the context of the finance minister’s various options in the forthcoming budget.
See more Budget 2012 videos and expert views on Firstpost: Ajay Shah, Rupa Rege Nitsure, Indranil Pan, Ashima Goyal, Jim Walker, DK Joshi, Ajit Ranade, Art Woo.
See more Budget 2012 issue based videos on Firstpost: Subsidies, Fiscal Deficit, Taxation.
Firstpost encourages open discussion and debate, but please adhere to the rules below, before posting. Comments that are found to be in violation of any one or more of the guidelines will be automatically deleted:
Personal attacks/name calling will not be tolerated. This applies to comments directed at the author, other commenters and other politicians/public figures
Please do not post comments that target a specific community, caste, nationality or religion.
While you do not have to use your real name, any commenters using any Firstpost writer's name will be deleted, and the commenter banned from participating in any future discussions.
Comments will be moderated for abusive and offensive language.