The economy may witness revival later this year with fiscal stimuli work its way through. However, such a recovery can sustain only if the government returns to fiscal discipline, according to Duvvuri Subbarao. The RBI governor is holding on to the 6 per cent GDP growth estimate for this year, based on the central bank''s balance of evaluation in the weeks following the April monetary policy.
The new government, the RBI governor implied, might wish to carefully weigh the benefits of another fiscal stimulus with the cost of a rising fiscal deficit. Mr Subbarao was speaking for the first time since the dramatic victory of the Congress-led UPA government on May 16 which promises a stable government for the next five years.
The new government, the RBI governor implied, might wish to carefully weigh the benefits of another fiscal stimulus with the cost of a rising fiscal deficit. Mr Subbarao was speaking for the first time since the dramatic victory of the Congress-led UPA government on May 16 which promises a stable government for the next five years.
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