Recently, the focus on fiscal deficit, borrowing, and debt has intensified. Experts like Dr. Raghuram Rajan emphasize the need for sustainable fiscal policies.
For instance, the latest data suggests that India’s fiscal deficit stands at 6.8% of GDP. To combat this, policymakers have initiated measures such as reducing unnecessary expenditures and increasing tax revenues. The aim is to bring the fiscal deficit down to 4.5% by 2025.
While challenges persist, concerted efforts can lead to a more stable economy. As Dr. Rajan noted, ‘fiscal discipline is essential for a nation’s economic growth.’