With a little over two months to go for the presentation of the Union budget, the government has confirmed what most had feared: the United Progressive Alliance’s fiscal arithmetic is awry. It is now planning to borrow even more.
It was obvious that the claim of lowering the gross borrowings to 4.6% of gross domestic product in this fiscal was based on hope rather than fact. However, the finance ministry stuck to its claims—which included raising Rs 40,000 crore through disinvestment of the government’s holdings in PSUs to balance the fisc.
Having accepted the hard truth about its mismanagement of the fisc, the government has to proffer solutions. There have been news reports sourced to unnamed officials claiming that some desperate options were being considered. If you can’t do good, please ensure that you do no further harm.