Best of BS Opinion: Increasing fiscal constraints, Budget 2021, and more

Illustration: Binay Sinha
On the back of lower interest rates, advanced economies are adopting a more liberal fiscal approach. India is not in a position to embrace the same path. Inflation, for instance, is still a worry and higher debt can create instability in a developing country fairly quickly. In the context of fiscal management, our lead editorial notes that instead of making higher public debt a permanent constraint for the Indian economy, the government should address its inability to mobilise revenues. India’s tax-GDP ratio has remained largely static for decades.

This Budget does little to assure strong growth beyond FY22. As I have written before, we will find it difficult to exceed an average of 5 per cent growth in the medium-term, writes Shankar Acharya

Although the private sector has overtaken the public sector in terms of job creation, the scale of operations of even the giants in Indian business has not been large enough to alter employment dynamics the way China has managed, writes Kanika Datta

“The Congress today is a confused and divided party. Such a confused party cannot help the country or anyone”

Prime Minister Narendra Modi

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel