Focussing On A Girdled Budget

The first Budget of the new government must address plenty of urgent issues. An incomplete list includes slow domestic growth, widespread drought, the collapse of private consumption and investment, low tax collections, the high fiscal deficit and many poll promises to fulfil.  However there are things that cannot be addressed by policy. One of those – which is, global energy prices, could cast a shadow over the economy for the next year. Then again, maybe not. The Lords of Finance as governors of the world’s largest central banks are collectively known, express their opinions on the world economy every two months. In June, they all said the global economy is slowing down. The US Federal Reserve, European Central Bank, Bank of Japan, Bank of England, RBI and the People’s Bank of China all issued gloomy advisories. Lower global growth has a negative impact on the...