The big picture: macro economics of outlays and outcomes

Abstract

The Fiscal Responsibility Act has been bypassed in the budget with a failure to achieve the fiscal deficit target and by a reduction in the share of capital expenditures. Special purpose vehicles and public-private initiatives have limited ability to further infrastructure investment and this along with the inability to control transfer payments will not encourage private capital formation, the targeted engine of growth. Finally, taxes on fringe benefits should not be on the productive component of these benefits and taxes on cash withdrawals are not neutral and affect the efficiency offinancial intermediati