Question: Some commentators have argued that the failure of the "Super committee" is good thing for the economy? Do you agree?
Answer:
The Super committee failure means that there will not be premature spending cuts. The economy is still in the state of uncertainty and the spending cuts may further dent the recovery prospects. Furthermore, a scope for raising the taxes moderately is there. A tax increase is definitely something the government can look forward to reduce the fiscal deficit rather than reducing the expenditure. So the main is that the economy does not seem to be in a state to take a risk of reduced spending and high taxes, and this is what comes out of the failure of the Super Committee.