Infrastructure...

Public spending in times of fiscal-consolidation from a rating point of view may be not so good but we have also ample reasons not to believe the rating agencies. The last recession we saw in 2008 is largely attributed to banks misconduct and wrong ratings in the US... They painted a good scene of the economy while debt and inflation soared at risky levels (the sub-prime-crisis)... Economist criticized rating-agencies for this. Therefore, if we think that rating agencies have a credibility-problem that might be true... Public-spending on infrastructure when the private sector is constrained of capital and infrastructure, itself... will help pick the economy steam, growth, because we are supplying what the economy really needs to increase quality of life... We want inclusive development of all people and regions and that should be best gained when we increase knowledge and skills, a productive work-force, a true human-capital... he will also pay taxes, revenue will increase... The government is exploring ways to finance the infrastructure-deficit... This best way to finance this is to borrow from the West for long-term where interest rates are record low or allow near complete FDI... That would also help improving foreign-reserves, meanwhile... The RBI too can contribute through lending its gold which lying idle in the reserves, and corporate should be included to bring in private capital... The GoI is considering PF funds to finance infrastructure in the long-run, good-idea...