A Fine Balance on the Budget

  • M.Govinda Rao, Professor in National Institute of Public Finance, says “Budget-making is a very difficult exercise in India.”
  • He recommends the increase of public investment to revive the investment climate. The government will have to move over to cash transfers wherever feasible, particularly on items like gas and kerosene subsidy.
  • The government will have to leave enough savings for the private sector to borrow at a reasonable rate of interest.