Friday, 13 December 2013

Economic crisis ?

With the beginning of the elections, the indian govt is going to face the pressure of keeping its fiscals goals under their limits. UPA has felt the heat of state elections and in order to sustain its power in other states it would have to loosen its wallets and have to spend with both hands open in order to win the trust of the common man. Already the govt has exhausted its 85% of the expenditure in first half of the fiscal, with very little remaing for the other half and that too in the election times. So its hard to believe that govt can restrict its fiscal deficiet target to 4.8%. At this point of time govt cant even think of reducing the subsidies on diesel etc. In fact govt would try to lure the common man by offering more subsidies and other welfare programmes, that would lead to presure on govt funds and in a way lead to increasing of fiscal defciet. 

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