Managing fiscal deficit is crucial for economic stability. India’s debt-to-GDP ratio stands at 89.6%. The government aims to reduce this ratio by implementing strategic debt management policies.
For instance, the introduction of a debt ceiling can help curb excessive borrowing. Additionally, investing in growth-oriented sectors can enhance revenue generation. As of 2022, the government has allocated $15 billion towards infrastructure development.
This investment is expected to yield a 10% increase in GDP. Experts suggest that a balanced approach to debt management is essential for sustained economic growth.