Political Deficit Outstrips Fiscal Deficit

Abstract

The budget has got a near unanimous thumbs down from economists and analysts but very few have indicated what the finance minister could have done differently. No lam not seeking to hold a brief for the ace politician. All I am saying is that while we overtly worry over the fiscal deficit, we are all conscious he is working in a milieu of political deficit. Pranab Mukherjee doesn't have the financial elbow room to implement the socialist diktats of the congress leadership. And he doesn't have the political elbowroom to go for bold reforms. The budget doesn't show the political will to tax enough and distribute goodies nor does it restrain the ftsc enough to allow the private sector to grow.