Modi government's spat with the RBI is rooted in the
structural characteristic of neo-liberalism. This
entire debate has arisen as a fall-out of neo-liberalism,
of the contradictions that inevitably arise in a neo-liberal
economy between the compulsion on the part of the
government to please international finance and its
need to win elections. Expenditures have to be stepped
up for the latter, while international finance disapproves
of such stepping up.
The article was originally published in the
Peoples Democracy on
November 12, 2018.