We should strive to make Indian monetary, fiscal policies more congruous: NK Singh

Renowned economist and chairman of 15th Finance Commission NK Singh on Friday suggested the way forward for fiscal policy by saying, "We should put thought into making Indian Monetary Policy along with Indian Fiscal Policy more congruous."

Speaking on India's Financial Conundrum at Columbia Summit on Indian Economy virtually, Singh added that there should be a sub-national bankruptcy. "I am exhausted with the election season that just got over, the race of giving more and more, and giving for free is a destructive populism, and thus, we need a sub-national bankruptcy." Former member of parliament, Singh also focused on the need of having more literate legislatures.

On being asked about simultaneous elections, Singh said that just after the government comes to office, from the second year onwards, sub national elections begins which attracts the entire focus of the government. "Thus because of repetitive cycle of elections, the governance turns out of only 2 years. We recently has elections in 5 states, the government has to do a difficult balancing act, as the geopolitical tension was going on and pandemic was also there," NK Singh said.

Singh added further that there should be governance till 4 and 4.5 years until it gets distracted by sub-national election.

The Columbia Indian Economy Summit, which will go on for three days, will bring together academics, business leaders and policymakers to discuss Indian economic policies, reforms, and their impact.

The Summit will capture some crucial issues, including overall macro and growth prospects, health policy, evaluation of India's new bankruptcy law, role of industrial parks in development, India's digital economy, financial sector, free trade agreements and trade policy, privatization of banks, among others.

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