99 : Management of Fiscal Stress: Are Greece’s Solutions Relevant for India?
Sasidaran Gopalan and S. Narayan
11 May 2010
The financial crisis in Greece and the measures to tackle it have led to a considerable debate on
how fiscal deficits should be managed by countries facing fiscal stress. While the immediate
causes for worry are Greece's ballooning budget deficit and the risk that other fragile countries
like Spain and Portugal might default, the turmoil has also exposed deeper fears that
government borrowing in bigger nations could be unsustainable. To some degree, these concerns
are relevant for countries like India and those staring at similar numbers. In this context, this
piece explores the relevance of the proposed Greece's solutions for India in managing its fiscal
stress.