Monday, March 19, 2012

FM’s Fiscal Number Is A Load Of Bull

The total losses of the oil marketing companies will be around Rs 2,13,000 crore when Mukherjee has provided only Rs 40,000 crore for fuel subsidies, says a Business Standard report. That leaves a gap of Rs 1,73,000 crore. And we are not even talking about other subsidies like fertiliser and food – where too the provisions look inadequate.

R Jagannathan:  FM’s fiscal number is bull

The Telegraph: The Godzilla of all fudges

Almost the entire expenditure on big ticket items is being reclassified as grants. The govt can then be extravagant in splashing out money on these schemes without having to bother about the strain such fiscal profligacy can impose on deficit reduction commitments.

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