The comments by the Economic Advisory Council (EAC) come amid India’s economic growth slumping to a three-year low of 5.7% in the April-June quarter, which many experts attribute to last year’s demonetisation of 500 and 1,000-rupee notes. “The trouble of a large fiscal deficit is its tendency to spill over to the current account. The government wants to raise its capital expenditure beyond the budgeted Rs 3.10 lakh crore but is cautious that it does not breach its fiscal deficit target. The government has already met 92% of its fiscal deficit estimate of Rs 5.46 lakh crore for 2017-18. The Asian Development Bank too lowered India’s fiscal growth to 7% from 7.4%.

Source: Hindustan Times October 11, 2017 09:43 UTC