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We sent an email to: Please click on the link inside the email to complete your registrationThis service is temporary unavailable due to system maintenance. Please try again later.The username entered is already associated withanother account. Please enter a different usernameThe email address you have entered is already in use.Please re-enter the email address.Fayaz Kabli/ReutersThe government acknowledges it must take action on unsustainable budget and trade deficits.India’s government acknowledges it must take action on unsustainable budget and trade deficits – a major reason that global investors have soured on the country.So why have officials, led by Finance Minister P. Chidambaram, yet to take steps to correct the situation?Mr. Chidambaram, a former finance minister, returned to the ministry in late July amid expectations his firm hand would steer the government’s finances back to health.But he is yet to move, adding to a sense of listlessness.Of late, the government has offered regular promises they ll soon take steps to ease the budget deficit and attract foreign investment, but few specific details have emerged.The Finance Ministry denies charges of sluggishness. Whatever is in the ambit of the ministry, the work is on, D.S. Malik, a spokesperson for the ministry, http://www.tomsoutletsalecheap.com - tomsoutletsalecheap.com , told India Real Time.Still, at least publicly, the government has remained silent on specific plans to combat the nation s worsening financial situation.The main reason is politics. The ruling Congress party will face huge pressures, even from its own allies, if it takes decisions likely to be unpopular with voters.Mr. Malik acknowledged that “in certain matters, the agreement of other political parties is important. Investors, though, are looking for a bold policy move to symbolize that New Delhi is serious.A major worry is the budget deficit, which has ballooned to 5.75% of GDP due to heavy spending on social programs and failure to increase tax hauls.Meanwhile, the trade deficit is widening and a fall in foreign investment needed to plug that gap has worried credit ratings agencies.The government has earmarked raising diesel prices as its response to the challenges but still nothing has happened as yet.This week, Oil Minister Jaipal Reddy, preparing the ground, said such a hike was unavoidable. Subsidies on diesel prices, http://www.cheaptomsshoessalei.com - toms shoes sale , used by farmers, cost the state $15.2 billion a year, or 1% of GDP, a major reason for the budget blowout.The government has hiked oil prices twice since May but has left diesel alone, worried about a backlash from farmers and other important voting blocks.Media reports suggested the government would announce a hike Tuesday. But the day came and went without an announcement. There are expectations a Cabinet panel meeting later Thursday or on Friday, could make a decision on diesel prices. I would imagine between today and tomorrow, when the Cabinet meets, you will have the news,” Law Minister Salman Khurshid said Thursday, http://www.cheaptomsshoessalei.com - cheaptomsshoessalei.com .He took a snipe at India s socialist opposition parties who have
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