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Journalism of Courage
An aggressive effort to reduce the fiscal deficit is needed. Is Manmohan Singhs new team up to it?
Capital expenditure by the government in the first half of this year has reached just 5 per cent of its progressive total expenditure. Despite all attempts by successive finance ministers,this figure has remained anaemic after payments including subsidies,interest and salaries are accounted for. To put the number in perspective,the total subsidy paid by the oil marketing companies for cooking gas in six months of this year adds up to more than half of this expenditure. Seen alongside a fiscal deficit report card showing that it has already touched 65 per cent of the estimate for the year,this figure makes the spectre of the economy hitting junk status among international credit rating agencies appear all too real.
With this reshuffle,the prime minister has placed himself in direct control over at least a dozen key economic ministries. Each is manned either by a minister of state reporting to him,as in power or corporate affairs,or by ministers in whom he has clear faith. Yet it remains to be seen if the rearrangement would help speed up decision-making.
