Given the constraints of the Interim Budget, the focus now shifts from Parliament to Mint Street. Till the new government is sworn in, the bulk of the crisis management will lie with the RBI. The Interim Budget was not supposed to make a forward-looking statement.
The budget is more like a report card for the government, showcasing its achievements. Status quo permeates all through apart from small pointers to concerns over fiscal deficit. Three immediate measures should be to cut interest rates, active liquidity management and a ceiling/cap on Liquidity Adjustment Facility.
N S Venkatesh, MD & CEO, IDBI Gilts
