Srivastava is chief policy advisor EY India and former Director, Madras School of Economics.
C Rangarajan, D K Srivastava write: There’s a need to look closely at provisions regarding capital expenditure, fiscal deficit and state borrowings.
C Rangarajan, D K Srivastava write: A word of caution, though: With higher expenditure, financed through borrowings, the impact of liquidity expansion on inflation needs to be monitored.
The Centre must be forthcoming on these issues while recognising that extraordinary situations call for extraordinary solutions. Now, reforms have to focus on specific sectors.
Despite the recessionary conditions in the industrialised countries, it may still be possible to pitch for a higher growth in exports. The recent announcements on boosting exports is a recognition of this.