BackRaghuram Rajan’s note of caution
Before taking charge as the RBI governor, Rajan left his final imprint on a crucial economic document in the finance ministry
Premium(Sameer Joshi/Mint)
Before taking charge as the 23rd governor of the Reserve Bank of India, Raghuram Rajan left his final imprint on a crucial economic document in the finance ministry as its chief economic adviser by adding an analysis with details of recent trends in public finance at the centre and state governments.
In the report, titled India Public Finance Statistics 2012-13, Rajan wrote that care should be taken that essential components of expenditure are not curtailed while compressing public expenditure. The warning is significant because India’s fiscal deficit in April to July has already crossed 62% of the full-year target. Finance minister P. Chidambaram is expected to significantly cut Plan expenditure to meet the fiscal deficit target of 4.8% of gross domestic product in 2013-14.
-web.jpg)
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
