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The challenge of ballooning defence pensions in India
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The Union budget was rightly praised for its honesty and transparency, for its boldness in ignoring the largely unfounded fear of a sovereign credit rating downgrade, and also for its clear articulation of a privatization strategy. Of course, much euphoria was on account of the relief of no new taxes, not even a covid cess, nor a wealth tax on the super-rich. But as the dust and euphoria settles, a sober examination of the budget is necessary. Can the large deficit be funded without causing interest rates to go up? Will its fiscal stimulus have a multiplier effect on aggregate growth? ....

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