Put Own House In Order

RBI Governor Shaktikanta Das recently came down heavily on advanced economies for unilateral policies and the risk it poses for the world. Das advised emerging market economies to follow policies that promote macroeconomic and financial stability, while focusing on growth.

- Anand Adhikari

His words, however, do not reflect ground reality. Are we doing enough for macroeconomic stability? The credibility of India’s GDP numbers is frequently challenged for ‘overestimation’ by economists. There are reports of the CAG putting India’s fiscal deficit at 6.1 per cent of GDP as against 3.4 per cent, in 2018/19. This includes off-balance sheet borrowings that the government is encouraging PSU