We are losers. Don't make it worse.

With the Union Budget to be presented on 1 February 2020, Prof Arvind Panagariya, who was Vice Chairman at Niti Aayog from January 2015 to August 2017, has some advice on how to make the Indian economy grow faster. "After growing at 5% in FY20 (fiscal year 20), the slowest pace in a decade, India's gross domestic product (GDP) growth will start increasing from the next fiscal year", but "the recovery is likely to be slow and GDP growth will be just above 6% until FY23", said the World Bank. "Even these estimates are optimistic projections and they do not capture ground reality. This is evident from the fact private estimates are already projecting a less than 5% growth in this year too," said Prof Himanshu. Some recommend that "India should allow fiscal deficit to rise 1 percentage point or more", but this would be unwise because "once we add up fiscal deficits of the Center and States and off budget borrowing, public sector deficit turns out to be as high as 8% of GDP". "Outstanding debt of states has risen over the last five years to 25% of GDP, posing medium-term challenges to its sustainability, according to the RBI (Reserve Bank) study," wrote Nag and Dormido. "With the center's finances already under acute stress, we may see cut backs in pace of spending by some of the states," said Garima Kapoor. "The government is likely to reduce spending for the current fiscal year by as much as Rs 2 lakh crore ($27.82 billion) as it faces one of the biggest tax shortfalls in recent years, three government sources said." This year's budget hoped to raise Rs 24.61 trillion from taxes, but it has collected just Rs 11.74 trillion so far, and it hoped to raise Rs 1.05 trillion from sale of public assets, but it has manged to collect only Rs 181 billion till November 2019, wrote Vivek Kaul. No hope of containing the fiscal deficit. Panagariya recommends allowing retail inflation to rise above the 4%, +/- 2%, target set by the government in 2016. "A 2% higher inflation than currently will also help boost tax revenues on the one hand and lower the real lending rate on the other." The government collects tax on the nominal GDP, which grew at 7.53%, the lowest since 1975-76. Increasing inflation will give more money to the government while we get less from our savings. Kill the ordinary family. The government should give up control of public sector banks (PSBs). That is never going to happen. The government uses our savings in PSBs to distribute loans in the hope of stimulating consumption and announce waivers of loans to farmers to win elections. Foreign investors watch spending of tax revenues but they don't care if we lose our deposits. That is why the government is so keen to pass a law to limit deposit insurance to Rs 100,000. Chicken feed. Professors should think before writing irresponsible advice. They are encouraging plunder of citizens.