The fiscal deficit has become a pressing concern for governments worldwide. In India, the fiscal deficit reached 6.9% of GDP in 2021. To manage this, the government has implemented various strategies, including reducing subsidies and increasing taxes. For instance, the goods and services tax (GST) has been instrumental in increasing revenue.
However, more needs to be done to reduce the deficit. The government can consider reducing unnecessary expenditures and increasing public-private partnerships. By doing so, the government can reduce the fiscal deficit and promote economic growth.
With a focused approach, the government can achieve its fiscal targets and ensure a stable economy. The key is to adopt a narrow and targeted approach to fiscal deficit management.