Letter to BS: Direct cash transfer may weaken country's fiscal position

The stable rating will affect the election results too

For the past 13 years, the Fitch sovereign rating of India hasn't improved. The main reason behind this is the fiscal weakness of the country. The government budgeted fiscal deficit of Rs 6.24 trillion or 3.3 per cent of GDP in the financial year 2019 but up to November 2019, it will be Rs 7.14 lakh crore. 

Now, in the financial year 2020 also, our country’s fiscal position is going to be weak because of direct cash transfer. Farmers’ loans have been waved off, income tax rebate has also increased up to Rs 5 lakh. The government has failed to improve