The recent emphasis on fiscal prudence has led to a renewed focus on budgetary discipline. With the current fiscal deficit at 6.8% of GDP, policymakers are under pressure to reduce expenditure and increase revenue. The implementation of the Fiscal Responsibility and Budget Management Act has been instrumental in promoting fiscal discipline.
However, more needs to be done to ensure sustainable economic growth. The government must prioritize expenditure and allocate resources efficiently to maximize returns. By adopting a disciplined approach to budgeting, India can reduce its fiscal deficit and achieve long-term economic stability.
The target is to reduce the fiscal deficit to 5.5% of GDP by 2025.