In 1973, the Kreditbanken (bank) at Norrmalmstorg in Stockholm was attacked by robbers, who held bank employees hostage for five days. After the drama, it was evident that the hostages sympathized with their captors, even though they were held against their will. The situation is now considered an academic study — the Stockholm Syndrome — where people get emotionally attached to people who obviously try to do them harm.

More apparent, perhaps was the case of Jaycee Lee Dugard, who was held for 18 long years — from 1991 to 2009 — but got so emotionally attached to her abductor that she even helped him in his business and met customers. Being an unwilling hostage, or in other cases, just being in an unwelcome situation with no way out, makes us rationalize in favour of our position.

Less dramatically, we become hostage to our own opinion. We simply can't let go of what we believe is "normal", even in the face of facts. If your blood tests show you have a high cholesterol level, your

While we are battered with news about abandoned babies, victories and then losses for telecom firms, elections in UP and surging stock markets, it's useful to note the quietly released data on the fiscal deficit that are seriously alarming.

The Comptroller General of Accounts (CGA) has reported that the government revenue, from April to December 2011, is 15% lower than the same period last year. Meanwhile, total expenditure is up 14%. Higher spending and lower revenue point to a fiscal deficit that is more than double last year's figures, till December.

Indian Central government

Advance Taxes Are Not Enough

December, was when corporates (and individuals) pay another chunk of advance tax. This should have bolstered government revenues, but it seemingly has not. Total tax revenue in December, net of what was paid to the states, was Rs 99,944 crores, just 5.3% above the previous year. For the April to December time period, tax collections are just 7.5% higher.

Consider that India's Gross Domestic Product has

"Inflation is when you pay Rs. 100 for the fifty rupee haircut you used to get for 25 rupees when you had hair"; a quote I received on twitter. In India, when we speak of inflation, we've never really talked about haircuts. No, I'm serious, stick with me.

The Inflation Index that our country talks about is based on the Wholesale Price Index (WPI), which is a weighted sum of product prices at the wholesale level. That means stuff that you can buy at wholesale markets, such as vegetables, copper, fuel, or even liquor. But it doesn't include the cost of services; the WPI will indicate the cost of vegetables and meat to your favourite restaurant, but it won't add up the cost of chef/waiters' salaries, rent of the premises, air-conditioning costs and valet parking. In the haircut example, they'll note that the scissors or shampoo got more expensive, not that the haircut costs you more.

The world over, what is used is a Consumer Price Index (CPI), which uses a basket of goods that you are