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Have a little more patience with Mr Mukherjee
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Inida' slowdown from 9% to 6.7% growth rate is mainly the result of lower private consumption says the Economis, as the contribution to growth of private consumption dropped by half in 2008. Which is why it sees the handouts to consumers through tax cuts and welfare spending making sense in the short run, even as India's finances are stretched. After a 36% increase in government spending in this budget, the fiscal deficit is estimated to be 12% in 2009, including "off-budget" items. Increasing the efficiency of the fertilizer subsiies by putting it directly in farmer's hands instead of fertilizer makers is a priority, as this takes up 1.5% of GDP.
India's new budget for 2009-2010 sets priorities in infrastructure and aid to the poor.
07/07/2009
Infrastructure spending to go up from 6% to 9% of GDP by 2014.
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Have a little more patience with Mr Mukherjee
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