You are here: Home>Collections  Do we need more stimulus
packages?  Feb 20, 2009, 12.58am IST  Nilesh ShahNilesh Shah
ICICI PrudentialFocus on execution and efficiency  India is
probably running a very large stimulus package considering the
problems it is facing vis-?-vis high fiscal deficit. High public
debt and historically large fiscal deficit have stretched our
public finances. While it is important to reduce the short-term
pain of lower growth, it cannot be at the cost of high
inflation, lower growth or both in the future. The fine balance
required to manage prudence and stimulus is something which will
be difficult to expect from a poll-bound government but not much
from the seasoned regulators.  India will also face the head
wind of drop in future savings rate as government turns from
saver to spender. It also needs to keep in mind that FY09 growth
to some extent is front-ended by its stimulative policy aka high
fiscal deficit. The back-ended price for the same needs to be
kept in mind.  The governme