Nobody is envying the clout and publicity Finance Minister Pranab Mukherjee is enjoying in Indian political and economic circles. He will soon venture on an enterprise that will earn him more brickbats than bouquets. It is February and time for the grand annual show called the Union Budget.
The expectations are sky high with the Indian economy performing so well amidst global economic slowdown. However, the burgeoning fiscal deficit and runaway food price inflation are proving dampeners. Both the industry and the public want more for less. Will the FM be able to satisfy both sections?
When Indian economy started faltering under recession, the government came up with timely fiscal stimulus packages to shore it up. With the worst over, economists are calling for the withdrawal of stimulus to contain inflation. The government is hesitating and has reassured that stimulus won’t be withdrawn by hurting the growth.
Industry bosses are jittery with the demand for stimulus exit gaining ground in the recent weeks. The widening fiscal deficit is also a matter of serious concern for the entrepreneurs. All the main industry organizations such as FICCI, CII and ASSOCHAM have called for the continuation of fiscal stimulus for a few more months to allow the economy to stabilize.
The hurdle for all concerned is the skyrocketing inflation. Industry is suggesting improvement of supply chain as the solution to inflation. There is also demand for governmental support to launch a second round of green revolution.
There is no doubt that the FM is treading on thin ice. Whether he will go along with the populist demands or take a pragmatic approach is anybody’s guess. The wait is almost over!
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
