Fiscal Impetus Missing

Fiscal Impetus Missing The economy is facing a serious structural constraint Public sector investment, which crowds-in private sector output and investment, has suffered badly. Private sector companies are not in a position to raise fresh equity as the share market is in the doldrums. Fear of non- performing assets and capital adequacy requirements is hindering banks and financial institutions in extending credit to industry. In such a situation, decisive action on the fiscal front alone can break the impasse.