New government could make quick gains in growth by fixing paralysis in decision-making
Abstract:
In a recent article on this page (December 3), finance minister P Chidambaram enumerated the achievements of his government as well as his own. No doubt, he deserves much credit for facing head on many challenges he inherited from his predecessor.
Rapid growth and concomitant rise in revenues have led to a build up of huge appetite for spending in most ministries in recent years. The recent sharp decline in growth, which arrested growth in revenues, did not curb this appetite. Consequently, the task of playing the bad cop to contain fiscal deficit fell squarely on the FM's shoulders.