Vivek's Commentary

Rather go to bed without dinner than to rise in debt. - Benjamin Franklin   We are going to bed without dinner but still debt is rising. Our outstanding liability is around 67% of total GDP. Fiscal deficit at the end of August was around 96% of the budget estimate for 2017-18. Then one important question arises – ‘Are we moving towards 1991?’ Let’s see..  (Source - Data from Reserve Bank of India is used for calculation) Fiscal deficit is obviously very high. For this time, I am taking absolute figure (not in percentage). Both states and central fiscal deficit is very higher than 1990s Fiscal deficit. Total outstanding liability is rapidly increasing and very high compare to 1991. Revenue deficit is also higher than 1991 in absolute terms.  (Source - Data from Reserve Bank of India is used for calculation)  So does it mean we are very close to crisis? Let’s see another side of picture.. Foreign reserves are increasing and very high compare t