India’s fiscal deficit has been a subject of concern for many years. Recently, the government has taken steps to address this issue. The fiscal responsibility and budget management act has been amended to allow for more flexibility in fiscal planning. This has led to a decrease in the fiscal deficit from 6.8% in 2019 to 6.5% in 2022.
However, more needs to be done to bring it down to the targeted 5%. Experts suggest that the government should focus on increasing revenue through taxation reforms and reducing unnecessary expenditures. For instance, the GST council has been working on simplifying the tax structure and reducing rates. If implemented correctly, these reforms can lead to a significant reduction in the fiscal deficit.
With the next budget around the corner, it will be interesting to see what steps the government takes to address this issue.