Moody’s Investors Service has said that the growth projection made in the Budget 2020-21 look ambitious in the context of structural and cyclical challenges. The government expects the Indian economy to expand at 10 per cent in nominal terms in the next fiscal year. Slower growth will once again put pressure on government finances.
Meanwhile, according to the latest data, the net household financial savings have declined significantly, and will be a drag on economic revival. The government is trying to tap more foreign savings, which could increase risks. In the context our lead editorial notes: While the idea of