India’s fiscal deficit has been a subject of concern for many years. With a target of 6.4% for the current fiscal year, the government is taking steps to manage the deficit. Recently, the finance minister announced plans to increase spending on infrastructure projects, which is expected to boost economic growth.
However, this increase in spending may also lead to a higher fiscal deficit. To manage this, the government is considering introducing new taxes and increasing the rates of existing ones. For instance, the goods and services tax (GST) rates may be increased to 12% from the current 10%.
This move is expected to generate additional revenue of around ₹50,000 crores. While this may help in managing the fiscal deficit, it may also lead to higher prices for consumers. The government needs to strike a balance between managing the deficit and not putting an extra burden on the common man. With the next budget just around the corner, it will be interesting to see how the government plans to manage the fiscal deficit.