The Institute of Economic Growth, New Delhi, forecast two days ago that the rate of inflation would go up to between 9-10 per cent in the next three months. In two months, the rupee will nod at Rs 47. And, apart from what the IEG says, it's likely that government will borrow heavily this year to meet its expenditure. At market rates, that's a bit of good news for those who will buy into instruments, but the overhanging temptation to simply print more money must have some official bean counters salivating.
Some good can lead to something better.
Moreover, numbers do not always reflect positive qualitative change in income and aspiration. There's another blip of movement, and this is, amazingly enough, with the public sector. The remaining 26 employees will wrap up soon. In anticipation of this windfall, and in a smart move to generate savings, financial institutions are already offering options aimed at sloughed off public sector employees. This has amazing potential, as bloated workforces can be made leaner or unviable enterprises shut down, assets stripped and used to offer more voluntary severance schemes, fund needy public spending, infrastructure, and a hundred other applications.