The extra borrowing for states linked to central govt approval seems harsh, but is clearly a way to encourage states to come up with reforms on labour/land etc. Seems a good move, assuming @narendramodi govt is clearly very reform-focussed itself
All those talking of very little stimulus need to keep in mind what would have happened without govt intervention @sanjeevsanyal @SubramanianKri @nsitharaman as tax collections and divestment collapsed. So you need to look at the extra spending that will now happen ...1/2
New spend:
Rs 4.2 lakh cr: GoI borrowing
Rs 4 lakh cr: New state govt borrowing
Rs 1.5-2 lakh cr new spend announced over 5 sessions by @nsitharaman
Anyone expecting more asking for the moon
Total centre+state deficit will rise 3-4% of GDP anyway
Debt will rise to 80% this year
Rs 4.2 lakh cr: GoI borrowing
Rs 4 lakh cr: New state govt borrowing
Rs 1.5-2 lakh cr new spend announced over 5 sessions by @nsitharaman
Anyone expecting more asking for the moon
Total centre+state deficit will rise 3-4% of GDP anyway
Debt will rise to 80% this year
Snakes and ladders is a good way to explain the challenges for @narendramodi
So far, Modi has tended to go along more with the snakes and provided less ladders for industry ... will he now change? Over the past 5 days, @nsitharaman has offered hope of a change in heart, but 🤞
So far, Modi has tended to go along more with the snakes and provided less ladders for industry ... will he now change? Over the past 5 days, @nsitharaman has offered hope of a change in heart, but 🤞
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