Potential challenges include the problem of resource raising, India’s fiscal consolidation promises and our energy security needs.
The economy requires a massive increase in government expenditure to overcome the drastic impact of demonetisation. But will this cause foreign capital to depart?
The finance minister needs to begin to think of strategies to counter the negative impact of a tax war on business taxation.
The Centre is effectively saying it wants a cashless economy for the millions who survive in an honest cash economy. The dishonest cash economy controlled by big business is allowed to continue and thrive.