The mandate of this government is unmistakably for pragmatism, development, inclusivity, nationalism and good governance. This government does not enjoy the luxury of hiding behind the shields like limitation of coalition, party ideology and conventional political paradigms. People have afforded BJP complete freedom to deliver on the promised change and are entitled to expect an express delivery from the government. Fiscal prudence is good. But that discussion could wait for a sunny day. In overcast conditions, as forecasted for this fiscal and the next, we need to bother more about leaking roof and broken umbrella.

1. 04 August 2019
Vijay explores the treasure you know as India. He shares his experiences about social, economic and
cultural events and conditions of India through www.investrekk.com. He contributes his pennies to the
society as Director, Equal India Foundation, He can be reached at vijaygaba.investrekk@gmail.com
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Leaking roof and broken umbrella
Aur bhi gham hain zamaane mein mohabbat ke sivaa
Raahatein aur bhi hain vasl ki raahat ke sivaa - Sir Faiz Ahmed Faiz
(There are other sufferings too in this worlds besides the agony of love,
There are other joys too, besides the joy of union)
In recent months a whole lot of commentators have (over)emphasized on the extent of fiscal
deficit India can or should or cannot or should not afford. I do not think I can add anything
useful to the arguments in favor or against the need for expansion of fiscal deficit to support
the efforts for revival of investment cycle in the country.
My emphasis is that the government's fiscal policy needs to be in harmony with the popular
mandate it has received.
I strongly believe that the mandate of this government is unmistakably for pragmatism,
development, inclusivity, nationalism and good governance. This government does not enjoy
the luxury of hiding behind the shields like limitation of coalition, party ideology and
conventional political paradigms. People have afforded BJP complete freedom to deliver on the
promised change and are entitled to expect an express delivery from the government.
Accordingly, I feel the budgeted estimate of ratio of fiscal deficit to the GDP should actually not
figure very high in the priority list of the government. In my view there is a multitude of deficit
that needs to be bridged on a higher priority.
In particular the following deficits (not necessarily in the given order) need to be assigned
priority over the budgeted fiscal deficit:
1. Capital deficit
2. Demand deficit
3. Skill deficit
4. Employment opportunity deficit
5. Trust deficit
6. Social infrastructure deficit
7. Physical infrastructure deficit (
8. Productivity deficit
9. Compliance deficit
10. Corporate governance deficit
Fiscal prudence is good. But that discussion could wait for a sunny day. In overcast
conditions, as forecasted for this fiscal and the next, we need to bother more about leaking roof
and broken umbrella.