tag:blogger.com,1999:blog-19649274.post3895169697622299097..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Improvement in Indian public financeAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-19649274.post-8590959723592566862007-11-01T17:46:00.000+05:302007-11-01T17:46:00.000+05:30Ajay, the passage of the FRBM was indeed a landmar...Ajay, the passage of the FRBM was indeed a landmark achievement in bipartisan legislation. While the centre has been sticking to the targets under FRBM certain reservations remain. <BR/><BR/>Thanks to the business cycle and structural improvements in tax administration, the growth in tax collections has been unprecedented. A look at the tax/GDP numbers will attest to that. So instead of sticking to the letter of the FRBM targets the government could actually have done better. It is disappointing that a government run by an economist has allowed expenditure to bloat under cover of rapid revenue growth. Fiscal tightening would also have helped when we are grappling with overheating fears. The time for all this is past, I think. With the pay commission award and elections looming, things could start going downhill from next year onwards. <BR/><BR/>Another reason to take a dim view about the fisc is the issue of off-Budget oil, food and fertiliser bonds, in effect shoving subsidies under the carpet. Reckoning these bonds would add about 0.5 to 1% to the fiscal deficit/GDP ratio.athreyahttps://www.blogger.com/profile/07478841602907114983noreply@blogger.com