Tightening revenue deficit doesn't seem the right course: NIPFP director

For the next year, a high buoyancy and a positive growth should increase fiscal space, says Chakraborty

Weeks before the Union Budget, Pinaki Chakraborty, director of the National Institute of Public Finance and Policy, New Delhi, sat down with Subhomoy Bhattacharjee to discuss the challenges ahead for the Indian economy. Edited excerpts:

What is the macro picture of the economy?

The macro picture is a lot better now than it was some time ago. If you look at the predictions of April-June 2020 about the economic shock from Covid-19, the actual impact has been far less severe. Going forward, I shall expect the improvements in goods and services tax (GST) receipts to sustain. 

However, it may be difficult to cover