Ila Patnaik puts together the facts on deficit reduction, and off-balance sheet items.
You might like to see the recent IMF document, and an article of mine that (among other things) takes stock of India's progress towards fiscal stability. I emphasise three key tests of fiscal stability:
- The debt/GDP ratio should drop in all years, barring rare calamities;
- Government bonds should be voluntarily purchased by well motivated actors (i.e. not force-fed through financial repression or to PSU financial firms) and
- Measurement of deficits and debt should be correct.
At present, India fails on all three counts.