In this context, administered interest rates fixed by the Government on a number of small saving schemes and provident funds is of special relevance as they generally offer a rate higher than corresponding instruments available in the market as well as tax incentives.
However, rather than being detrimental to a return to sustainable economic growth, their adherence to their mediumterm objectives will strengthen consumer and investor confidence. Countries without fiscal imbalances can, of course, allow automatic stabilisers to operate fully. That said, however, there is no case for fiscal activism.