The Budget Tax Reforms and Public Policy

Errol D'Souza The weak spots in the economy are not just the fiscal deficit, inflation, and infrastructure but also the decline in savings and investment rates, the real appreciation of the rupee, and the increased debt-servicing, about which the budget is silent. The tax reforms also do not stand fully vindicated as is being claimed, and the composition of government expenditures has deleterious consequences for the long-run growth of the economy.