The recent fiscal deficit trends have sparked debates worldwide. In India, the government has been focusing on reducing its fiscal deficit to achieve economic stability. As of 2022, the fiscal deficit was around 6.9% of the GDP.
The goal is to bring it down to 4.5% by 2025. To achieve this, the government has implemented various measures such as increasing taxes and reducing subsidies. For instance, the goods and services tax (GST) has been modified to include more items, resulting in increased revenue.
However, some experts argue that these measures may have a negative impact on the economy, particularly on the lower-income groups. The government must strike a balance between reducing the fiscal deficit and ensuring economic growth. With the current trends, it is expected that the fiscal deficit will continue to decrease, but at a slow pace.