With the current fiscal deficit at 6.8% of GDP, policymakers must prioritize budgetary restraint. The recent union budget allocated 35% of expenditures towards interest payments, totaling $13.4 billion. Experts argue that this trend is unsustainable.
By implementing measures such as reducing non-essential expenditures and increasing tax revenues, the government can work towards achieving a fiscal deficit of 5.5% by 2025. This requires careful planning and discipline, but the long-term benefits to the economy are undeniable.