In the pre-crisis period, India’s fiscal consolidation was largely on track, consistent with the targets adopted under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. However, this consolidation got interrupted by the crisis induced fiscal stimulus. Thereafter, the government adopted a revised road map for getting fiscal consolidation back on track, and adhered to the target in 2012/13.
You see, confidence is a central bank's most valuable asset when it comes to fulfilling its tasks to the best of its abilities. None more so than in times of turbulence, when trust and confidence provide an essential basis. And we are living through turbulent times, there is no doubt about that.