The size of the Budget matters.Before economic reforms began, the Union Budget used to be as large as 17% of GDP. Only Pranab Mukherjee presented Budgets that were 14-15% of GDP, and that was because he ran up large fiscal deficits. The overall size of government spending matters, when it comes to giving a boost to the torpid economy. So, the first goal should be to make it big, say, 14% of GDP.Wouldn't that push up the fiscal deficit? A larger Budget need not push up the fiscal deficit.

Source: Economic Times January 23, 2018 17:15 UTC