Remedy Worse Than Disease

Fiscal Reform and Growth M S MOHANTY deserves high appreciation for his in-depth technical analysis of macro- economic stability, growth and fiscal reform (February 8). It is concluded that in the context of growth, fiscal adjustment needs to be tailored to reverse the declining trend in infrastructure investment and basic social services and to improve the productivity of resource use in the public sector. These long- term reform measures assume as much critical importance in promoting growth in the economy as in reducing the fiscal deficit ratio to a sustainable value.