The recent trends in fiscal deficit management have sparked intense debate. Experts like Dr. Rajiv Kumar and Dr.
Arvind Virmani have presented contrasting views. A closer examination reveals that the current fiscal imbalance is largely attributed to inadequate revenue generation. For instance, the revenue shortfall in the last quarter exceeded 15%.
To mitigate this, policymakers could consider implementing measures like rationalizing subsidies and enhancing tax compliance. The GST council’s recent decisions are a step in the right direction. However, more needs to be done to ensure sustainable fiscal health.
The government’s commitment to fiscal prudence will be crucial in navigating these challenges.