Monday, December 30, 2013

How not to reduce the fiscal deficit

It is true that sound economics dictates that fiscal deficit should not be allowed to surge. Is it OK for the Finance Ministry to adopt any method in order to achieve this laudable goal?

GOI is adopting dirty tricks in the process. Tax refunds are delayed. Genuine payments to contractors and others are postponed to the next financial year. And now comes the news in Economic Times that even the usually mollycoddled exporters are not spared. Duty refunds are delayed by months.

The government should play the rules of budget in a fair manner. Any attempt to hoodwink any section of the public will misfire.

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