India's budget deficit worst in the BRICS

Back in 2007, the BRICS were the apple of global investors. The blistering pace at which these countries were growing, it was little wonder that everyone wanted to invest in them. But in recent times things have changed. The countries have slowed down. Inflation has shot up and the current account situation in nearly all of the countries has worsened from what it was in 2007. But even when all BRICS are doing badly, India seems to be faring even worse. Especially when it comes to budget deficits which is nothing but the excess of government's spending over what it earns. As per The Mint, India's budget deficit stood at 4.9% of GDP in 2013. This makes it the worst on the BRICS list. In fact India has fared badly even on other economic parameters. Inflation is high, its current account gap is increasing, growth has slowed down drastically and the fiscal mess is getting worse. This is a poor reflection on the country's government. We have been writing about how the gover nment needs to pull up its socks and fast track reforms. Though it has gone ahead with some reforms

in the recent past, however, there is still a lot of work that needs to be done. 

 

                                                                                                                     Source: The Mint