Fiscal deficit targets have been relegated to the back burner, but India hasn’t made a big splash with spending, given its fiscal constraints. Of course, it is imperative that the government maintain a balance between growth and fiscal prudence. One view is that growth will create future revenues, which in turn would take care of the fiscal deficit. Estimates suggest the Union government’s fiscal deficit could widen to more than 7% of gross domestic product for FY21. The bottom line is to make the fiscal deficit count.

Source: Mint January 27, 2021 00:22 UTC