Saturday, October 26, 2013

Remember what Jim O'Neill said about India?

Here's a fantastic example of what India's like:

Reuters - India eyes $15 billion rollover of subsidy costs into next budget.

Really, seriously. Their fuel and food subsidies were going to put them over their deficit limit, so the Congress Party is now going to hide the cost of this year's subsidies in next year's budget so they can say they met their target.

And that's okay because they hid last year's subsidies in this year's budget.

The nice thing, though, is Modi could probably save about $60 billion a year when he takes office. Apparently, most of the subsidy for food goes to waste instead of feeding the poor; most of the fuel subsidy goes to rich Indians running diesel gensets because the electrical system can barely even be said to exist.

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