Wipe out the Fiscal Deficit and make it a surplus

The editorial keep to fiscal path ( Business Standard 23/2/2105) is very timely highlighting the need to maintain Fiscal discipline and the way to achieve it. The Fiscal responsibility and Budget management Act seems to have been kept aside for quite some time and its relevance as of today assumes  lot of importance in the context of keeping the Fiscal deficit under control when the means to find resources to finance the Infrastructure Development are scary given the fact that the Government remains averse to take some very bold decisions. The economy has abundant resources not only to wipe out the Fiscal deficit but also to fund the Infrastructural developments is a fact but how to tap the resources   incurring the wrath of the vested interests is a big question mark . The resources can be easily found in the gold reserves of the country, black money held both in the economy and outside the economy in various forms, unproductive assets held in PSBs and  non performing PSUs and PSBs wasting the scarce resources for laxity in Governance and accountability. If the Government can take some steps to convert these unproductive and undesirable assets of the economy into productive assets, the resources would be plenty enough to make the Fiscal deficit a surplus and make the infrastructure development a reality to support the economic system on a perennial basis. Will the Government show the grit and act?

T.V.Gopalakrishnan

(Modified version of this appeared in Business Standard under Letters Column dated 24/2/15).