"On paper, a fiscal stimulus", says Dr. Subir Gokarn, Chief Economist, Standard & Poor’s Asia Pacific
The immediate reaction to the interim budget was that it did nothing. Nor should anything have been expected, given the limitations imposed by convention on the last budget presented before a general election. The only thing it is supposed to accomplish is that the government does not run out of spending power before the full budget is presented by a new regime. However, given the overall macroeconomic situation, it was only natural that expectations about major stimulus measures built up. In such situations, hope invariably triumphs over experience. » more...
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