Govt must not give in to temptation of a stimulus. It does not have the fiscal space | The Indian Express

Govt must not give in to temptation of a stimulus. It does not have the fiscal space | The Indian Express

Written by Duvvuri Subbarao |Updated: September 18, 2019 9:56:02 am

Duvvuri Subbarao, former RBI governor, is a retired IAS officer. Views are personal.

Govt must not give in to temptation of a stimulus. It does not have the fiscal space

It’s completely irrational to not admit the true fiscal deficit. We are fooling no one, least of all potential investors who base their decisions on our macro sustainability.

This letter is not about what you should do next but about what you should not. You should not launch a fiscal stimulus. (Representational image)

Dear Finance Minister,