ranjan

Fiscal adjustment policies should be designed within an overall methodological framework that links the implementation of a set of policy measures to the achievement of the economy's objectives for inflation, growth, and external balance. Rebalancing growth towards domestic demand has emerged as a key post crisis for sustaining developing a country's  rapid growth in the medium and the long term. What matters most for rebalancing are specific fiscal measures tailored to each country's unique circumstances. The primary contribution of fiscal policy is to help remove the structural impediments and distortions that stand in the way of (i) a better balance between external and domestic demand and (ii) a better balance being production for both domestic and foreign markets. In this context, the composition of public spending matters in the rebalancing process.  Specific areas of government expenditure are health, education pensions and social protection. The shifting of public e