Duvvuri Subbarao, former RBI governor, is a retired IAS officer. Views are personal.
If government crosses Rubicon, markets will fear that constraints on fiscal policy are being abandoned.
For all their differences, the global financial crisis and the corona financial crisis are similar in one respect — they both teach us life-enhancing lessons.
Duvvuri Subbarao writes: Unlike rich countries which can throw the kitchen sink at the crisis, India can’t afford to ignore the risks of fiscal excess of that magnitude, no matter the compelling circumstances.
As much as the headline fiscal deficit numbers are a cause for concern, the underlying quality of fiscal consolidation is a bigger concern.
India’s prospects, including our aspiration for a $5 trillion economy, depend on the Centre and the states working together.
It’s completely irrational to not admit the true fiscal deficit. We are fooling no one, least of all potential investors who base their decisions on our macro sustainability.
Question is not whether public sector banks should be big or small. It is: Do we need public sector banks?
Government’s proposal is the right way forward but it’s an idea whose time has yet to come
If institutions such as FATF continue to keep Pakistan on the grey list or even blacklist it, and IMF imposes more stringent conditionalities, global investor confidence in Pakistan could nosedive, deepening the economic crisis.
Indian Administrative Services can lead the charge. If it reinvents itself, its effects will ripple through the system, galvanise change.
A nuanced process of active but careful cadre management should inform lateral entry into IAS
There should be a system of annual recruitment into the IAS of mid-career professionals from diverse sectors