It's going to be a one way street for inflation - upwards

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.


Updated Date: Jan 21, 2015 12:00 PM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See