Article
Suyash Rai, Anirudh Burman
{
"authors": [
"Suyash Rai"
],
"type": "legacyinthemedia",
"centerAffiliationAll": "",
"centers": [
"Carnegie Endowment for International Peace",
"Carnegie India"
],
"collections": [],
"englishNewsletterAll": "",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie India",
"programAffiliation": "",
"programs": [],
"projects": [
"Political Economy"
],
"regions": [
"India"
],
"topics": [
"Domestic Politics",
"Economy"
]
}
Source: Getty
In The Media
Budget 2019: India Has a Law to Cap Fiscal Deficit but UPA and NDA Couldn’t Care Less
The Indian budget is such a big deal because it combines the exercise of many powers. Among them, the power to run deficits is special.
By Suyash Rai
Published on Jul 4, 2019
Source: Print
The budget is such a big deal because it combines the exercise of many powers. Among them, the power to run deficits is special. In a competitive democracy, the pressures to spend always exceed the willingness to tax. This creates a fertile ground for excessive deficits, whose consequences are suffered by future generations.
The legal framework for fiscal discipline is provided under the Fiscal Responsibility and Budget Management (FRBM) Act. Passed in 2003 when the NDA was in power, and notified in 2004 by the UPA government, the FRBM law sets deficit caps (fiscal deficit of 3 per cent of the GDP and elimination of revenue deficit) and limits on debt and guarantees, among other requirements.
About the Author
Suyash Rai
Former Fellow, Carnegie India
Suyash Rai was a fellow at Carnegie India. His research focuses on the political economy of economic reforms, and the performance of public institutions in India.
- The Best of Ideas and Institutions, 2023
- Global Technology Summit 2022 Action PointsOther
- +4
Shruti Sharma, Suyash Rai, Konark Bhandari, …
Recent Work
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
More Work from Carnegie Endowment for International Peace
- BIS in the New Age of Import ControlsCommentary
The Bureau of Industry and Security needs to adjust its focus and practices to maintain its position as the U.S. government’s primary champion of international technological competition.
Geoffrey Irving
- How Is Hungary’s New Government Doing?Article
Despite myriad challenges and occasional stumbles, the new Hungarian government is moving ahead with energy and conviction to uproot years of illiberalism and corruption and rebuild Hungarian democracy.
Thomas Carothers
- The Kremlin Can No Longer Postpone Hard Economic DecisionsCommentary
Depleted financial reserves and a shrinking tax base mean it is no longer possible to simultaneously deliver high defense spending, price stability, and economic growth.
Alexandra Prokopenko
- 9/11 at 25: A Reading List for Understanding the War on TerrorCommentary
The books, podcasts, and films that explain the world it made.
Andrew Leber
- Animal Tested by Leonid Bershidsky: A Utopian Novel for the Instagram AgeCommentary
Blurring the line between humans and animals is a long-standing tradition in social utopian prose. In his latest novel, Leonid Bershidsky reminds us that in social experiments, people are often treated no differently than animals.
Alexander Baunov
