Unless the Govt gets serious about recovery n curb unwarranted expenditure, there is no future. The first set of subsidies to be cut are
- All Govt depts should not get even a drop of subsidy on petro products. This includes Armed Forces, Govt machinery, PSUs, Politicians. Therefore the budget allocations need to be recast
- Do not curtail allowances for the political class, but place on record Every Penny spent on each politician. Only then will the public and the Aam Aadmi realise how much it costs the exchequer how much it cost to maintain their so called leaders.
- If the corporates are to get concessions and tax rebates, the salary of their employees can not be Vulgar. There has to be some semblance of rationale applied.
- Top priorities to build grain storage silos in receiving states and not producing states. To ensure timely movement, the Rail corridors should be given top priority. Simply - Not a grain of food produced should be wasted.
Yes with wasteful spending like MNREGA still continuing fiscal deficit is bound to widen. Also ministers and MLAs are having upto 30 personal secretaries in some states. What is this country coming to?
The trade deficit may not go up, as the corresponding period (base) data is also high. The deceleration of exports has started somewhere in the month of September 2011 and have been continued. However during September 2012, the imports have grown by 5% where as the exports has shown degrowth. Hence the higher deficit. The overall currect account deficit will be somewhere around $150 -160 billion this year, with the higher FII inflows and remittances by Indians abroad, I hope that the same many not pose any big problem in terms of reduction foreign currency balances.