It’s not just the budget deficit numbers that have gone out of control, but even the quality of the deficit is suspect. And in a scenario where growth is slowing, it might be difficult to boost revenue.
The automatic solution would be to control expenditure to set the fiscal numbers right. Dharmakirti Joshi, chief economist, Crisil, believes, you have to start with cutting oil subsidies – with diesel deregulation taking the prime spot in reforms.
He also explained that tackling issues of land acquisition and the Mining Bill will be the two other major issues the government must handle around budget time.
Joshi also feels the government needs to relook at its flagship programme NREGA and use it to boost productivity and not just consumption.
Watch excerpts of the interview below:
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Updated Date: Jan 21, 2015 12:02:05 IST