As governments worldwide navigate economic turmoil, a fresh fiscal framework is taking shape. In India, the recent union budget highlighted significant allocations for infrastructure development and social welfare schemes. The focus on fiscal consolidation is evident, with a projected fiscal deficit of 6.4% for the current financial year. To achieve this, the government plans to increase tax revenues through improved compliance and introduce new taxation measures.
Meanwhile, other countries are also rethinking their fiscal policies, with some opting for more expansionary approaches. The outcome of these efforts will be closely watched, as the global economy struggles to recover from the pandemic. With a mix of caution and optimism, experts predict that these new fiscal frameworks will shape the course of economic growth in the coming years.